Labour Supply and Welfare with Piecewise Linear Budget Constraints: an Introduction

John Creedy

No 755, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: The aim of this paper is to provide an introductory analysis of labour supply in the presence of piecewise linear tax structures. Emphasis is given to the efficient computation of local optimal for a tax rate structure having any number of effective marginal tax rates.

Keywords: LABOUR SUPPLY; BUDGET; SOCIAL WELFARE (search for similar items in EconPapers)
JEL-codes: D60 I30 J22 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2000
Note: This paper has now been published in: Creedy, J. (2001), Labour Supply, Welfare and the Earnings Distribution, Australian Journal of Labour Economics, 4, no.3, pp. 134-151.
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