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Non-Bunching at Kinks and Notches in Cash Transfers

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: CPB Netherlands Bureau for Economic Policy Analysis
Jan Möhlmann: CPB Netherlands Bureau for Economic Policy Analysis

CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

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.

JEL-codes: D83 H24 H31 (search for similar items in EconPapers)
Date: 2019-06
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