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Non-bunching at kinks and notches in cash transfers in the Netherlands

Nicole Bosch (), Egbert Jongen (), Wouter Leenders () and Jan Möhlmann ()
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Nicole Bosch: CPB Netherlands Bureau for Economic Policy Analysis
Egbert Jongen: CPB Netherlands Bureau for Economic Policy Analysis
Wouter Leenders: University of Zurich
Jan Möhlmann: CPB Netherlands Bureau for Economic Policy Analysis

International Tax and Public Finance, 2019, vol. 26, issue 6, 1329-1352

Abstract: Abstract We study the behavioural responses to kinks and notches in the Dutch system of cash transfers, using data on the universe of Dutch households for the period 2007–2014. We typically do not find statistically significant evidence of bunching around kinks or notches, neither in income nor in wealth. This finding is robust across different household types and modes of employment. We consider potential mechanisms that can explain this apparent lack of bunching.

Keywords: Bunching; Cash transfers; Income; Wealth (search for similar items in EconPapers)
JEL-codes: D83 H24 H31 (search for similar items in EconPapers)
Date: 2019
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