Exempting Overtime from Taxation: an assessment of the french experiment
Pierre Cahuc and
Stéphane Carcillo ()
Additional contact information
Stéphane Carcillo: UP1 - Université Paris 1 Panthéon-Sorbonne, OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development
Post-Print from HAL
Abstract:
The TEPA law of 1 October 2007 considerably reduced taxation on overtime. Its aim was to reduce labour costs in order to increase the number of hours worked and salaries earned. This study evaluates the impact of the reform by comparing the change, since the law's introduction, in the number of hours worked by employees who work across the border, with those who live near the border but work in France. The first were not affected by the reform while the second were. The results indicate that exempting overtime from taxation did not fully achieve its objective: while the employees concerned benefitted from increased earnings that did not come from working longer hours. The reform had no significant impact at all on the number of hours worked. It did, however, result in an increase in the overtime declared by skilled employees seeking to maximize the tax benefits it offered without actually working more hours.
Date: 2012-03
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02527106v1
References: Add references at CitEc
Citations:
Published in 2012
Downloads: (external link)
https://shs.hal.science/halshs-02527106v1/document (application/pdf)
Related works:
Working Paper: Exempting Overtime from Taxation: an assessment of the french experiment (2012) 
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:hal:journl:halshs-02527106
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().