A Bounded Index Test to make Robust Heterogeneous Welfare Comparisons
Kristian Orsini ()
Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven
During last decade, improved macroeconomic and budgetary conditions have allowed for fiscal reforms in several EU countries. The main aim behind personal income tax reforms across Europe has been to reduce the tax burden on labour and to encourage work – especially for less productive workers. In this context, Anglo Saxon countries and more recently Continental European countries, including Belgium, have shown increasing interest in tax-benefit instruments awarding monetary transfers or tax reductions, conditional on employment. Using a discrete hours labour supply model, this paper assesses the impact of the 2001 Belgian Tax Reform on female labour supply. Results suggest that labour supply responses are moderate but significant by international standards. Yet, due to an uneven calibration of tax rebates and in-works benefits, the potential labour supply responses are rather dispersed over the whole range of the income distribution. Consequently, the gains from the reform do not appear to be evenly distributed across taxpayers.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ete:ceswps:ces0504
Access Statistics for this paper
More papers in Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven
Bibliographic data for series maintained by library EBIB ().