A new paper published ONLINE FIRST with free READLINK provides robust evidence for the Netherlands that policies targeted at working mothers with young children generate the largest labor supply responses but generate little additional government revenue. Introducing a flat tax, basic income or joint taxation is not effective.
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Analysing tax-benefit reforms in the Netherlands using structural models and natural experiments
by Henk-Wim de Boer and Egbert L. W. Jongen
Published ONLINE FIRST 2021: Journal of Population Economics
FREE ACCESS: Readlink: https://rdcu.be/cloOs
Author Abstract: We combine the strengths of structural models and natural experiments in an analysis of tax-benefit reforms in the Netherlands. We first estimate structural discrete-choice models for labour supply. Next, we simulate key past reforms and compare the predictions of the structural model with the outcomes of quasi-experimental studies. The structural model predicts the treatment effects well. The structural model then allows us to conduct counterfactual policy analysis. Policies targeted at working mothers with young children generate the largest labour supply responses but generate little additional government revenue. Introducing a flat tax, basic income or joint taxation is not effective.
Journal of Population Economics
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