Evaluation of four tax reforms in the United States: Labor supply and welfare effects for single mothers

Journal of Public Economics

Volumn 92, Issue 3-4, 2008, Pages 795-816

  Eissa, Nada ^a,b   Kleven, Henrik Jacobsen ^c,d,e   Kreiner, Claus Thustrup ^d,f,g  

^a GEORGETOWN UNIVERSITY   (United States)

^b NATIONAL BUREAU OF ECONOMIC RESEARCH   (United States)

^c LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^d EPRU   (Denmark)

^e CEPR   (United Kingdom)

^f UNIVERSITY OF COPENHAGEN   (Denmark)

^g CESIFO   (Germany)

Author keywords

Labor supply; Micro simulation; Single mothers; Tax reform; Welfare analysis

Indexed keywords

EID: 38949141619     PISSN: 00472727     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jpubeco.2007.08.005     Document Type: Article

References (36)

1. Allgood S., and Snow A. The marginal cost of raising tax revenue and redistributing income. Journal of Political Economy 106 (1998) 1246-1273
2. Auerbach A.J. The theory of excess burden and optimal taxation. In: Auerbach A.J., and Feldstein M. (Eds). Handbook of Public Economics vol. 1 (1985), Elsevier, Amsterdam Chapter 2
3. Auerbach A.J., and Rosen H. Will the real excess burden please stand up. NBER Working Paper vol. 495 (1980)
4. Ballard C.L. The marginal efficiency cost of redistribution. American Economic Review 78 (1988) 1019-1033
5. Ballard C.L., and Fullerton D. Distortionary taxes and the provision of public goods. Journal of Economic Perspectives 6 (1992) 117-131
6. Ballard C.L., Shoven J.B., and Whalley J. General equilibrium computations of the marginal welfare costs of taxes in the United States. American Economic Review 75 (1985) 128-138
7. Bourguignon F., and Spadaro A. Tax-benefit revealed social preferences. PSE Working Paper vol. 22-2005 (2005)
8. Browning E.K. Effects of the earned income tax credit on income and welfare. National Tax Journal 48 (1995) 23-43
9. Browning E.K., and Johnson W.R. The trade-off between equality and efficiency. Journal of Political Economy 92 (1984) 175-203
10. Cogan J.F. Fixed costs and labor supply. Econometrica 49 (1981) 945-963
11. Dahlby B. Progressive taxation and the social marginal cost of public funds. Journal of Public Economics 67 (1998) 105-122
12. Dickert S., Houser S., and Scholz J.K. The earned income tax credit and transfer programs: a study of labor market and program participation. In: Poterba J. (Ed). Tax Policy and the Economy. 9th ed. (1995) 1-50
13. Eissa N., and Hoynes H. Taxes and the labor market participation of married couples: the earned income tax credit. Journal of Public Economics 88 (2004) 1931-1958
14. Eissa N., and Liebman J. Labor supply response to the earned income tax credit. Quarterly Journal of Economics 61 (1996) 605-637
15. Eissa N., Kleven H.J., and Kreiner C.T. Evaluation of four tax reforms in the United States: labor supply and welfare effects for single mothers. NBER Working Paper vol. 10935 (2004)
16. Feenberg D., and Coutts E. An introduction to the TAXSIM model. Journal of Policy Analysis and Management 2 1 (1993) 189-194
17. Feldstein M. The effect of marginal tax rates on taxable income: a panel study of the 1986 Tax Reform Act. Journal of Political Economy 103 (1995) 551-572
18. Fullerton D., and Gan L. A simulation-based welfare loss calculation for labor taxes with piecewise-linear budgets. Journal of Public Economics 88 (2004) 2339-2359
19. Harberger A.C. Taxation, resource allocation, and welfare. In: Due J.F. (Ed). The Role of Direct and Indirect Taxes in the Federal Revenue System (1964), Princeton University Press 25-70
20. Heim, B.T., 2006. The incredible shrinking elasticities: married female labor supply, 1978-2002. Mimeo, Office of Tax Analysis, U.S. Department of the Treasury, February 2006.
21. Heim B.T., and Meyer B.D. Work costs and nonconvex preferences in the estimation of labor supply models. Journal of Public Economics 88 (2004) 2323-2338
22. Hotz, V.J., Mullin, C.H., Scholz, J.K., 2002. The earned income tax credit and labor market participation of families on welfare. UCLA, Vanderbilt and University of Wisconsin-Madison mimeo.
23. Immervoll H., Kleven H.J., Kreiner C.T., and Saez E. Welfare reform in european countries: a microsimulation analysis. The Economic Journal 117 (2007) 1-44
24. Kleven H.J., and Kreiner C.T. Labor supply behavior and the design of tax and transfer policy. Danish Journal of Economics 143 (2005) 321-358
25. Kleven H.J., and Kreiner C.T. The marginal cost of public funds: hours of work versus labor force participation. Journal of Public Economics 90 (2006) 1955-1973
26. Liebman J. The optimal design of the earned income tax credit. In: Meyer B., and Hotz-Eakin D. (Eds). Making Work Pay: The Earned Income Tax Credit and Its Impact on America's Families (2002), Russell Sage Foundation, New-York
27. Meyer B., and Rosenbaum D. Welfare, the earned income tax credit, and the labor supply of single mothers. Quarterly Journal of Economics 66 (2001) 1063-1114
28. Michalopoulos C., Robins P.K., and Card D. When financial work incentives pay for themselves: evidence from a randomized social experiment for welfare recipients. Journal of Public Economics 89 (2005) 5-29
29. Mirrlees J.A. An exploration in the theory of optimal income taxation. Review of Economic Studies 38 (1971) 175-208
30. Moffitt R. Incentive effects of the U.S. welfare system. Journal of Economic Literature 30 (1992) 1-61
31. Mroz T.A. The sensitivity of an empirical model of married women's hours of work to economic and statistical assumptions. Econometrica 55 (1987) 765-799
32. Robins P.K. A comparison of the labor supply findings from the four negative income tax experiments. Journal of Human Resources 20 (1985) 567-582
33. Saez E. Optimal income transfer programs: intensive versus extensive labor supply responses. Quarterly Journal of Economics 117 (2002) 1039-1073
34. Small K., and Rosen H.S. Applied welfare economics with discrete choice models. Econometrica 49 (1981) 105-130
35. Triest R.K. The effect of income taxation on labor supply in the United States. Journal of Human Resources 25 (1990) 491-516
36. Triest R.K. The efficiency cost of increased progressivity. In: Slemrod J. (Ed). Tax Progressivity and Income Inequality (1994), Cambridge University Press, Cambridge