Author: James P. Ziliak
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We present an econometrically tractable life cycle labor supply model for panel data including intertemporally progressive taxes on uncertain wage and nonwage incomes. Our two-stage fixed-effects generalized method-of-moments approach first estimates intratemporal and then intertemporal preferences. Specification testing demonstrates the value of incorporating joint progressive taxation of labor and nonlabor incomes. Results for prime-age men emphasize the roles played by hourly wage endogeneity, worker-specific effects, the measure of the rate of pay, and intertemporal budget constraint nonseparability. Simulations indicate that recent tax reforms, while not self-financing, stimulated male labor supplied by about 3 percent and reduced deadweight loss by about 16 percent.
Estimating Life Cycle Labor Supply Tax Effects
Author: James P. Ziliak
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We present an econometrically tractable life cycle labor supply model for panel data including intertemporally progressive taxes on uncertain wage and nonwage incomes. Our two-stage fixed-effects generalized method-of-moments approach first estimates intratemporal and then intertemporal preferences. Specification testing demonstrates the value of incorporating joint progressive taxation of labor and nonlabor incomes. Results for prime-age men emphasize the roles played by hourly wage endogeneity, worker-specific effects, the measure of the rate of pay, and intertemporal budget constraint nonseparability. Simulations indicate that recent tax reforms, while not self-financing, stimulated male labor supplied by about 3 percent and reduced deadweight loss by about 16 percent.
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We present an econometrically tractable life cycle labor supply model for panel data including intertemporally progressive taxes on uncertain wage and nonwage incomes. Our two-stage fixed-effects generalized method-of-moments approach first estimates intratemporal and then intertemporal preferences. Specification testing demonstrates the value of incorporating joint progressive taxation of labor and nonlabor incomes. Results for prime-age men emphasize the roles played by hourly wage endogeneity, worker-specific effects, the measure of the rate of pay, and intertemporal budget constraint nonseparability. Simulations indicate that recent tax reforms, while not self-financing, stimulated male labor supplied by about 3 percent and reduced deadweight loss by about 16 percent.
Three Essays on the Effect of Taxes and Tax Reform on the Life-cycle Labor Supply
Author: James Patrick Ziliak
Publisher:
ISBN:
Category :
Languages : en
Pages : 422
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 422
Book Description
The Effect of Anticipated Tax Changes on Intertemporal Labor Supply and the Realization of Taxable Income
Author: Adam Looney
Publisher:
ISBN:
Category : Families
Languages : en
Pages : 64
Book Description
We use anticipated changes in tax rates associated with changes in family composition to estimate intertemporal labor supply elasticities and elasticities of taxable income with respect to the net-of-tax wage rate. Changes in the ages of children can affect marginal tax rates through provisions of the tax code that are tied to child age and dependent status. We identify behavioral responses to these tax changes by comparing families who experienced a tax rate change to families who had a similar change in dependents but no resulting tax rate change. A primary advantage of our approach is that these changes can be anticipated, allowing us to estimate substitution effects that are not confounded by life-cycle income effects. We estimate an intertemporal elasticity of family labor earnings of 0.75 for families earning between $35,000 and $85,000 in the Survey of Income and Program Participation (SIPP) and find very similar estimates using the IRS-NBER individual tax panel.
Publisher:
ISBN:
Category : Families
Languages : en
Pages : 64
Book Description
We use anticipated changes in tax rates associated with changes in family composition to estimate intertemporal labor supply elasticities and elasticities of taxable income with respect to the net-of-tax wage rate. Changes in the ages of children can affect marginal tax rates through provisions of the tax code that are tied to child age and dependent status. We identify behavioral responses to these tax changes by comparing families who experienced a tax rate change to families who had a similar change in dependents but no resulting tax rate change. A primary advantage of our approach is that these changes can be anticipated, allowing us to estimate substitution effects that are not confounded by life-cycle income effects. We estimate an intertemporal elasticity of family labor earnings of 0.75 for families earning between $35,000 and $85,000 in the Survey of Income and Program Participation (SIPP) and find very similar estimates using the IRS-NBER individual tax panel.
The Effect of Taxation on Lifecycle Labor Supply
Author: Jane K. Dokko
Publisher:
ISBN:
Category :
Languages : en
Pages : 62
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 62
Book Description
Estimation of a Life-Cycle Model with Human Capital, Labor Supply and Retirement
Author: Xiaodong Fan
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We develop and estimate a life-cycle model in which individuals make decisions about consumption, human capital investment, and labor supply and use it to analyze changes in Social Security rules. The most important aspect of our paper is human capital towards the end of the life cycle which responds to changes in the rules. Retirement arises endogenously as part of the labor supply decision. The model allows for both an endogenous wage process through human capital investment (which is typically assumed exogenous in the retirement literature), an endogenous retirement decision (which is typically assumed exogenous in the human capital literature), and accounts for the Social Security system. We estimate the model using indirect inference to match the life-cycle profiles of employment and measured wages from the SIPP data. The model replicates the main features of the data--in particular the large increase in measured wages and small increase in labor supply at the beginning of the life cycle as well as the small decrease in measured wages but large decrease in labor supply at the end of the life cycle. We use the model to estimate the effects of various changes to tax and Social Security policies and show that allowing for human capital accumulation is critical.
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We develop and estimate a life-cycle model in which individuals make decisions about consumption, human capital investment, and labor supply and use it to analyze changes in Social Security rules. The most important aspect of our paper is human capital towards the end of the life cycle which responds to changes in the rules. Retirement arises endogenously as part of the labor supply decision. The model allows for both an endogenous wage process through human capital investment (which is typically assumed exogenous in the retirement literature), an endogenous retirement decision (which is typically assumed exogenous in the human capital literature), and accounts for the Social Security system. We estimate the model using indirect inference to match the life-cycle profiles of employment and measured wages from the SIPP data. The model replicates the main features of the data--in particular the large increase in measured wages and small increase in labor supply at the beginning of the life cycle as well as the small decrease in measured wages but large decrease in labor supply at the end of the life cycle. We use the model to estimate the effects of various changes to tax and Social Security policies and show that allowing for human capital accumulation is critical.
A Structural Approach to Estimating the Effect of Taxation on the Labor Market Dynamics of Older Workers
Author: Peter Haan
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
On Estimating the Effect of Taxation on Labor Supply
Author: Steven Dell Culler
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 456
Book Description
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 456
Book Description
The Estimation of Nonlinear Labor Supply Functions with Taxes from a Truncated Sample
Author: Michael D. Hurd
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 86
Book Description
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 86
Book Description
On Estimating the Labor Supply Effects of a Negative Income Tax
Author: Irwin Garfinkel
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 152
Book Description
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 152
Book Description
A Life-cycle, Human Capital Model of the Labor Supply Response to Negative Income Taxation
Author: David L. Horner
Publisher:
ISBN:
Category : African American men
Languages : en
Pages : 112
Book Description
Publisher:
ISBN:
Category : African American men
Languages : en
Pages : 112
Book Description