Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper estimates the change in optimal labor supply and household welfare resulting from the Tax Cuts and Jobs Act (TCJA) of 2017. We estimate labor supply elasticities using the Current Population Survey to simulate changes in optimal labor supply and welfare among households with different characteristics under the new TCJA tax code. Married household members reduce optimal hours post-TCJA; optimal hours increase among singles, except at the very top of the income distribution. All households’ welfare increased, on average, with gains disproportionately benefiting the wealthy, households with self-employment income or children, and most homeowners versus renters.