A Multi-state model of state dependence in labor supply: Intertemporal labor supply effects of a shift from joint to individual taxation

B-Tier
Journal: Labour Economics
Year: 2010
Volume: 17
Issue: 2
Pages: 323-335

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

In this paper I develop an intertemporal discrete choice model of female labor supply to analyze the effects of true state dependence and its effect on labor supply behavior over time. The estimation results show that state dependence is significantly positive at the extensive margin and lower but in general still significant at the intensive margin. I apply this model to study the short and long run labor supply effects of a fundamental reform of the German income tax system, i.e. the shift from joint to individual taxation of married couples and show that labor supply responses are significantly higher in the long run than in the short run.

Technical Details

RePEc Handle
repec:eee:labeco:v:17:y:2010:i:2:p:323-335
Journal Field
Labor
Author Count
1
Added to Database
2026-01-25