Publication Type
Journal Article
Version
acceptedVersion
Publication Date
8-2011
Abstract
The consumption-leisure choice model implies that an exogenous change in tax rates will induce a change in labor supply. This implication is expected to be important to labor supplied by secondary earners under a progressive tax system when spousal income alters effective marginal tax rates. This paper examines labor supply responses to the income tax changes associated with Japanese tax reforms during the 1990s. The results indicate that the hours-of-work elasticity with respect to the net-of-tax rate is 0.8 for married women.
Keywords
Labor supply elasticity, Intertemporal labor supply, Sample-selection correction model, Quasi-experiment, Tax reforms
Discipline
Asian Studies | Labor Economics
Research Areas
Applied Microeconomics
Publication
Labour Economics
Volume
18
Issue
4
First Page
539
Last Page
546
ISSN
0927-5371
Identifier
10.1016/j.labeco.2010.11.011
Publisher
Elsevier
Citation
YAMADA, Ken.
Labor Supply Responses to the 1990s Japanese Tax Reforms. (2011). Labour Economics. 18, (4), 539-546.
Available at: https://ink.library.smu.edu.sg/soe_research/1416
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.labeco.2010.11.011