Estimating labour supply elasticities based on cross-country micro data: A bridge between micro and macro estimates?
Jukka Pirttilä () and
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Håkan Selin: Uppsala Center for Fiscal Studies, Postal: Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
No 2013:1, Working Paper Series, Center for Fiscal Studies from Uppsala University, Department of Economics
We utilise repeated cross sections of micro data from several countries, available from the Luxembourg Income Study, LIS, to estimate labour supply elasticities, both at the intensive and extensive margin. The benefit of the data is that it spans over four decades and includes a large number of tax reform episodes, with tax rate variation arising both from cross-sectional and country-level differences. Using these data, we investigate whether micro and macro estimates differ in a systematic way. The results do not provide clear support to the view that elasticities at the macro level would be higher than corresponding micro elasticities.
Keywords: Labour supply; earnings; taxation; cross-country comparisons (search for similar items in EconPapers)
JEL-codes: E24 H21 J22 (search for similar items in EconPapers)
Pages: 35 pages
New Economics Papers: this item is included in nep-lab, nep-lma and nep-mac
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Journal Article: Estimating labour supply elasticities based on cross-country micro data: A bridge between micro and macro estimates? (2015)
Working Paper: Estimating Labour Supply Elasticities Based on Cross-Country Micro Data: A Bridge Between Micro and Macro Estimates? (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:uufswp:2013_001
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