The effect of age-targeted tax credits on labor force participation of older workers
Lisa Laun
Journal of Public Economics, 2017, vol. 152, issue C, 102-118
Abstract:
I analyze the effect of income tax policy changes on labor force participation of older workers. I exploit two age-targeted policy initiatives to promote work at older ages simultaneously implemented in Sweden in 2007: an earned income tax credit and a payroll tax credit for workers above age 65. Using an age-based discontinuity in eligibility criteria, I conduct a difference-in-differences analysis with the reform as an instrument for the net-of-tax rate. I find a participation elasticity with respect to the net-of-participation-tax rate of about 0.22 in the year following the 65th birthday for individuals who were working four years earlier.
Keywords: Labor supply; Retirement; Earned income tax credit; Payroll taxes (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047272717300968
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:152:y:2017:i:c:p:102-118
DOI: 10.1016/j.jpubeco.2017.06.005
Access Statistics for this article
Journal of Public Economics is currently edited by R. Boadway and J. Poterba
More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().