The Effects of Progressive Taxation on Labor Supply when Hours and Wages Are Jointly Determined

A-Tier
Journal: Journal of Human Resources
Year: 2009
Volume: 44
Issue: 2

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper extends a standard intertemporal labor supply model to account for progressive taxation as well as the joint determination of hourly wages and hours worked. We show that these two factors can have implications for both estimating labor supply elasticities as well as for using these elasticities in tax analysis. Failure to account for wage-hours ties and progressive taxation may cause the hours response to marginal tax rate changes to be understated by 5 to 30 percent for men.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:44:y:2009:i2:p386-408
Journal Field
Labor
Author Count
2
Added to Database
2026-01-24