A Structural Approach to Estimating the Effect of Taxation on the Labor Market Dynamics of Older Workers

Peter Haan and Victoria Prowse

No 4102, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We estimate a dynamic structural life-cycle model of employment, non-employment and retirement that includes endogenous accumulation of human capital and intertemporal non-separabilities in preferences. Additionally, the model accounts for the effect of the tax and transfer system on work incentives. The structural parameter estimates are used to evaluate the effects of a tax reform targeted at low income individuals on employment behavior and retirement decisions.

Keywords: life-cycle labor supply; income taxation (search for similar items in EconPapers)
JEL-codes: C23 C25 J22 J64 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009-03
New Economics Papers: this item is included in nep-age, nep-dge and nep-lab
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Published - published in: Econometrics Journal, 2010, 13 (3), S99 - S125

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Related works:
Journal Article: A structural approach to estimating the effect of taxation on the labour market dynamics of older workers (2010)
Working Paper: A Structural Approach to Estimating the Effect of Taxation on the Labor Market Dynamics of Older Workers (2009)
Working Paper: A Structural Approach to Estimating the Effect of Taxation on the Labor Market Dynamics of Older Workers (2009)
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