Drivers of participation elasticities across Europe: gender or earner role within the household?

Charlotte Bartels and Cortnie Shupe ()
Additional contact information
Cortnie Shupe: Consumer Financial Protection Bureau

International Tax and Public Finance, 2023, vol. 30, issue 1, No 6, 167-214

Abstract: Abstract We compute participation tax rates across the EU and find that work disincentives inherent in tax–benefit systems largely depend on household composition and the individual’s earner role within the household. We then estimate participation elasticities using an IV group estimator that enables us to investigate the responsiveness of individuals to work incentives. We contribute to the literature on heterogeneous elasticities by providing estimates for breadwinners and secondary earners separately, according to their potential earnings. Our results show an average participation elasticity of 0.0–0.1 among breadwinners and 0.1–0.4 among secondary earners in the EU as well as a high degree of heterogeneity across countries.

Keywords: Participation elasticities; Labor supply; Taxation; Cross-country comparisons; H24; H31; J22; J65 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10797-021-09711-z Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Drivers of Participation Elasticities across Europe: Gender or Earner Role within the Household? (2021)
Working Paper: Drivers of participation elasticities across Europe: gender or earner role within the household? (2018)
Working Paper: Drivers of Participation Elasticities across Europe: Gender or Earner Role within the Household? (2018)
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:itaxpf:v:30:y:2023:i:1:d:10.1007_s10797-021-09711-z

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-021-09711-z

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().