Work

Tax Reform, Sector‐specific Labor Supply and Welfare Effects*

Year: 2009

Type: article

Abstract: This paper focuses in particular on the 1992 tax reform in Norway. In this reform the top marginal tax rates were cut considerably. We find that the impact on overall labor supply is rather modest, but these modest changes shadow for stronger sectoral changes. The tax reform stimulated the women to shift their labor from the public to the private sector and to work longer hours. A calculation of mean compensated variation, calculated within the framework of a random utility model, shows that the richest households benefited far more from the 1992 tax reform than did the poorest households.

Source: Scandinavian Journal of Economics

DOI: 10.1111/j.1467-9442.2009.01565.x

Authors: John K. Dagsvik, Marilena Locatelli, Steinar Strøm

Institutions: Statistics Norway, University of Turin, University of Oslo, Ragnar Frisch Centre for Economic Research

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Reduced inequalities

Open Access status: bronze

Funder: Norges Forskningsråd