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Working Paper. No 313: Taxes, benefits and labour force participation: A survey of the quasi-experimental literature

PublicationWorking paper
extensive margin, Jacob Lundberg, John Norell. participation elasticity, labour supply, quasi-experimental methods
Working Paper No. 313
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Abstract

We review the literature that uses quasi-experimental methods to estimate the elasticity of labour force participation with respect to the financial gain from work. We find a wide range of elasticities, with an average of 0.38. 26 out of 31 papers find elasticities larger than 0.1, providing strong evidence that individuals respond to incentives on the extensive margin of labour supply. Elasticities are larger for women, and have declined over time.

*Revised 26 February 2020

Lundberg, J. & Norell, J. (2018).* Taxes, benefits and labour force participation: A survey of the quasi-experimental literature. (Ratio Working Paper No. 313).

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Working Paper. No 313: Taxes, benefits and labour force participation: A survey of the quasi-experimental literature
Working paperPublication
Lundberg, J. & Norell, J.
Publication year

2018

Published in

Ratio Working Paper

Abstract

We review the literature that uses quasi-experimental methods to estimate the elasticity of labour force participation with respect to the financial gain from work. We find a wide range of elasticities, with an average of 0.38. 26 out of 31 papers find elasticities larger than 0.1, providing strong evidence that individuals respond to incentives on the extensive margin of labour supply. Elasticities are larger for women, and have declined over time.

*Revised 26 February 2020

Taxes, benefits and labour force participation: A survey of the quasi-experimental literature
Article (with peer review)Publication
Lundberg, J. & Norell, J.
Publication year

2020

Abstract

Abstract
We review the literature that uses quasi-experimental methods to estimate the elasticity of labour force participation with respect to the financial gain from work. We find a wide range of elasticities, with an average of 0.36. 27 out of 35 papers find elasticities larger than 0.1, providing strong evidence that individuals respond to incentives on the extensive margin labour supply. Elasticities are larger for women, and have declined over time.

Taxes, benefits and labour force participation: A survey of the quasi-experimental literature
Artikel (med peer review)Publication
Lundberg, J. & Norell, J.
Publication year

2020

Abstract

Abstract
We review the literature that uses quasi-experimental methods to estimate the elasticity of labour force participation with respect to the financial gain from work. We find a wide range of elasticities, with an average of 0.36. 27 out of 35 papers find elasticities larger than 0.1, providing strong evidence that individuals respond to incentives on the extensive margin labour supply. Elasticities are larger for women, and have declined over time.

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