Labour supply and taxation with restricted choices
Magali Beffy
(1)
,
Richard Blundell
(2, 3)
,
Antoine Bozio
(4, 3, 5)
,
Guy Laroque
(2, 3, 6)
,
Maxime Tô
(2, 3)
Richard Blundell
- Fonction : Auteur
- PersonId : 910304
Antoine Bozio
- Fonction : Auteur
- PersonId : 743083
- IdHAL : antoine-bozio
- ORCID : 0000-0003-0201-6148
- IdRef : 129539597
Guy Laroque
- Fonction : Auteur
- PersonId : 966769
- IdHAL : guy-laroque
- ORCID : 0000-0003-1109-4703
- IdRef : 026966832
Maxime Tô
- Fonction : Auteur
- PersonId : 1328735
Résumé
A model of labour supply and taxation is developed in which observed hours reflect both the distribution of preferences and restrictions on choices. Hours restrictions are placed in a constrained rational choice setting in which the set of alternative hours on offer is restricted. Choices are made on a random subset of possible hours. We focus on the case where the choice set contains at most two offers. We show that when the choice set distribution is known, preferences can be identified. Conversely we show that, where preferences are known, the choice set distribution can be fully recovered. Conditions for identification of both preferences and the distribution of choice sets are also developed. We illustrate this approach in a labour supply setting with nonlinear budget constraints. Heterogeneity in the budget constraint reveals properties of the choice set. This framework is used to study the labour supply behaviour of a large sample of working age mothers in the UK, accounting for nonlinearities in the tax and welfare benefit system, fixed costs of work and restrictions on hours choices.
Domaines
Economies et financesFormat du dépôt | Fichier |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Labour supply and taxation with restricted choices
|
Résumé |
en
A model of labour supply and taxation is developed in which observed hours reflect both the distribution of preferences and restrictions on choices. Hours restrictions are placed in a constrained rational choice setting in which the set of alternative hours on offer is restricted. Choices are made on a random subset of possible hours. We focus on the case where the choice set contains at most two offers. We show that when the choice set distribution is known, preferences can be identified. Conversely we show that, where preferences are known, the choice set distribution can be fully recovered. Conditions for identification of both preferences and the distribution of choice sets are also developed. We illustrate this approach in a labour supply setting with nonlinear budget constraints. Heterogeneity in the budget constraint reveals properties of the choice set. This framework is used to study the labour supply behaviour of a large sample of working age mothers in the UK, accounting for nonlinearities in the tax and welfare benefit system, fixed costs of work and restrictions on hours choices.
|
Auteur(s) |
Magali Beffy
1
, Richard Blundell
2, 3
, Antoine Bozio
4, 3, 5
, Guy Laroque
2, 3, 6
, Maxime Tô
2, 3
1
CREST -
Centre de Recherche en Économie et Statistique
( 2579 )
- 5, Avenue Henry Le Chatelier, 91120 Palaiseau
- France
2
UCL -
University College of London [London]
( 300875 )
- Gower Street, London WC1E 6BT
- Royaume-Uni
3
IFS -
Laboratory of the Institute for Fiscal Studies
( 163521 )
- The Institute for Fiscal Studies 7 Ridgmount Street, London WC1E 7AE.
- Royaume-Uni
4
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
5
PJSE -
Paris Jourdan Sciences Economiques
( 1171428 )
- 48 boulevard Jourdan 75014 Paris
- France
6
ECON -
Département d'économie (Sciences Po)
( 226874 )
- 28 rue des Saints-Pères - 75007 Paris
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Volume |
211
|
Numéro |
1
|
Page/Identifiant |
16-46
|
Date de publication |
2019
|
Audience |
Internationale
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Licence |
Paternité - Pas d'utilisation commerciale - Pas de modification
|
Mots-clés (JEL) |
|
Domaine(s) |
|
Mots-clés |
en
Female labour supply, Taxation, Consideration set
|
DOI | 10.1016/j.jeconom.2018.12.004 |
Origine :
Publication financée par une institution
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