Evaluation of tax reforms when workers have preferences over job attributes and face latent choice restrictions
Marilena Locatelli () and
Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin
This paper analyzes the properties of a particular sectoral labor supply model developed and estimated in Dagsvik and Strøm (2006). Agents have preferences over sectors and latent job attributes. Moreover, the model allows for a representation of the individual choice sets of feasible jobs in the economy. The properties of the model are explored by calculating elasticities and through simulations of the effects of particular tax reforms. The overall wage elasticities are rather small, but these small elasticities shadow for much stronger sectoral responses. An overall wage increase and, of course, a wage increase in the private sector only, gives women an incentive to shift their labor supply from the public to the private sector. Marginal tax rates were cut considerably in the 1992 tax reform. We find that the impact on overall labor supply is rather modest, but again these modest changes shadow for stronger sectoral changes. The tax reform stimulated the women to shift their labor from the public to the private sector and to work longer hours. A calculation of mean compensated variation shows that the richest households benefited far more from the 1992 tax reform than did the poorest households
Pages: 41 pages
New Economics Papers: this item is included in nep-dcm, nep-lab and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.est.unito.it/do/home.pl/Download?doc=/a ... iklocatellistrom.pdf (application/pdf)
Working Paper: Evaluation of tax reforms when workers have preferences over job attributes and face latent choice restrictions (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uto:dipeco:200706
Access Statistics for this paper
More papers in Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin Contact information at EDIRC.
Bibliographic data for series maintained by Piero Cavaleri () and Marina Grazioli ().