The Anatomy of the Extensive Margin Labor Supply Response
2016 (English)Report (Other academic)
No previous quasi-experimental paper has systematically examined the relationshipbetween the extensive margin labor supply response to taxation and theemployment level. We model the labor force participation margin and estimateparticipation responses for married women in Sweden using population-wide administrativedata and a solid identification strategy. The participation elasticity ismore than twice as large in the lowest-skill sample (with relatively low employment)as compared with the highest-skill sample (with high employment). Ouranalysis suggests that cross- and within country comparisons of participation elasticitiesalways should be made with reference to the relevant employment level.
Place, publisher, year, edition, pages
Uppsala, 2016. , 50 p.
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2016:11
labor supply; social assistance; housing allowance; in-work tax credits; take up of transfer programs
Research subject Economics
IdentifiersURN: urn:nbn:se:uu:diva-301944OAI: oai:DiVA.org:uu-301944DiVA: diva2:955706