Title

Labor Supply Responses to the 1990s Japanese Tax Reforms

Publication Type

Journal Article

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

Labor Economics

Research Areas

Econometrics

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

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://www.sciencedirect.com/science/article/pii/S092753711000134X

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