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Did the earned income tax credit affect women’s labour supply in Sweden?
Stockholm University, Faculty of Social Sciences, Department of Economics.
Stockholm University, Faculty of Social Sciences, Department of Economics.
2019 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
Påverkade jobbskatteavdraget kvinnornas arbetskraftsutbud i Sverige? (Swedish)
Abstract [en]

Women’s labour supply in Sweden, even if it is high in comparison to other countries, is still lower than men’s. Did the Earned Income Tax Credit (EITC) reform in 2007 affect women’s labour supply? It is difficult to estimate the effects of the EITC, mainly because everybody in Sweden was treated simultaneously, and because the Great Recession hit at the same time. We use a difference-in-differences (DiD) method to estimate the effect of the policy where we compare Sweden before and after the introduction with countries without an EITC (Austria, Iceland, Norway and Switzerland). Theory suggests that participation in the labour market would increase when EITC is implemented, but it is not clear if hours of work would increase among those already participating. We are unable to conclude that there are any effects on women’s labour supply in response to the EITC reform.

Place, publisher, year, edition, pages
2019. , p. 33
Keywords [en]
Women’s labour supply, Earned Income Tax Credit (EITC), Neoclassical model of labour-leisure choice, Difference-in-Differences (DiD)
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-179418OAI: oai:DiVA.org:su-179418DiVA, id: diva2:1397008
Presentation
2020-01-14, 09:00
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Available from: 2020-03-10 Created: 2020-02-27 Last updated: 2020-03-10Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
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  • asciidoc
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