The Detaxation of Overtime Hours: Lessons from the French Experiment

Pierre Cahuc and Stéphane Carcillo ()

No 5439, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In October 2007 France introduced an exemption on the income tax and social security contributions that applied to wages received for hours worked overtime. The goal of the policy was to increase the number of hours worked. This article shows that this reform has had no significant impact on hours worked. Conversely, it has had a positive impact on the overtime hours declared by highly qualified wage-earners, who have opportunities to manipulate the overtime hours they declare in order to optimize their tax situation, since the hours they work are difficult to verify.

Keywords: tax exemption; overtime hours; working time (search for similar items in EconPapers)
JEL-codes: H24 H25 J22 J30 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2011-01
New Economics Papers: this item is included in nep-lab and nep-pub
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Citations: View citations in EconPapers (12)

Published - published in: Journal of Labor Economics, 2014, 32 (2), 361-400.

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Related works:
Journal Article: The Detaxation of Overtime Hours: Lessons from the French Experiment (2014)
Working Paper: The Detaxation of Overtime Hours: Lessons from the French Experiment (2014)
Working Paper: The Detaxation of Overtime Hours: Lessons from the French Experiment (2014)
Working Paper: The Detaxation of Overtime Hours: Lessons from the French Experiment (2011)
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