The net effects of switching from consumption taxation to inflation taxation on resource allocation and welfare crucially depend on production externalities. With elastic labor supply, raising inflation taxation decreases leisure, but increases the levels of real consumption, capital, and output. Moreover, this tax switch has two opposing effects on the level of real money balances: A positive ...

This paper deals with the effects of implementing a basic income on the labor supply side. The German welfare as well as tax and social contributions system are investigated. The results clarify that the abolishment of the so-called unemployment trap due to a basic income policy is a decisive advantage of this approach. In order to demonstrate possible labor supply side reactions to a basic inc...

This study investigates the effects of changes in various determinants of labor supply on the dramatic changes from the older (the 1950s and earlier) cohorts to the younger (the 1960s and later) cohorts in life-cycle labor supply behavior, and ultimately provides a model-based quantitative explanation of the recent decline in the aggregate labor supply of married women. On the basis of the Curr...

ences can be quite large, especially for housing. For example, according to 1990 Census data, the median housing price in New York is more than three times that of the median housing price in Cleveland.2 The question addressed in this paper is whether the common practice of ignoring local price variation in labor supply studies is as innocuous as has generally been assumed. In standard economic...

In this paper, we analyze family labor supply in urban China using discretized neo-classical labor supply model, where we take into account the unobserved heterogeneity of each spouse and their correlation, unobservability and measurement errors of the wage rates, and the correlation of the wage and preferences. The correlation of preference between spouses is also taken into account. Elasticit...

We explore the impact of the child care tax credit in the U.S. income tax system on the labor supply decisions of married women with young children by incorporating the cost of child care into a structural labor supply model. Using data from the 1986 NLSY, we find that government subsidies to child care increase labor supply substantially. Our policy simulations show that an increase in the val...

Labor supply functions for married men and women are formulated as a dynamic simultaneous equations ystem, which is estimated using panel data. Controlling for fixed individual effects allows marginal labor supply responses to be disentangled from permanent patterns in hours worked ue to assortative mating. The results suggest hat the labor supply of husbands and wives without pre-school childr...

In the year 2000, the German government passed the most ambitious tax reform in post-war German history aiming at a significant tax relief for households. One central aim of this tax reform was to improve work incentives and, thereby, foster employment. In this paper, I estimate an intertemporal discrete choice model of female labor supply that allows to analyze the behavioral effects of the ta...