Labour supply in Austria: an assessment of recent developments and the effects of a tax reform

Sandra Müllbacher and Wolfgang Nagl
Additional contact information
Sandra Müllbacher: Federal Ministry of Finance

Empirica, 2017, vol. 44, issue 3, No 4, 465-486

Abstract: Abstract We apply a structural discrete choice framework to estimate income-specific own-wage and cross-wage labour supply elasticities in regard to working hours and participation for married and single males and females in Austria. We use data from the Austrian components of the European Statistics of Income and Living Conditions from 2004 to 2012. Own-wage elasticities are very small for males and slightly higher for females. Cross-wage elasticities are practically zero for males and slightly negative for females. Male and female own-wage elasticities decrease with higher incomes. Over time female labour supply elasticities decrease. Furthermore, we assess the labour supply and fiscal effects of the Austrian tax reform of 2016. We find a total increase in working hours by 0.71%. The labour supply effects are stronger on the intensive margin, for females and for low-income earners. On total the tax reform induces a tax relief of 4.7 billion Euros. The positive effects on tax burden and disposable income increase with the individual income.

Keywords: Labour supply; Wage elasticity; Participation elasticity; Tax reform; Discrete choice (search for similar items in EconPapers)
JEL-codes: J08 J21 J22 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10663-017-9373-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:kap:empiri:v:44:y:2017:i:3:d:10.1007_s10663-017-9373-7

Ordering information: This journal article can be ordered from
http://www.springer. ... ration/journal/10663

DOI: 10.1007/s10663-017-9373-7

Access Statistics for this article

Empirica is currently edited by Fritz Breuss and Fritz Breuss

More articles in Empirica from Springer, Austrian Institute for Economic Research, Austrian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().