Change search
ReferencesLink to record
Permanent link

Direct link
Estimating labour supply elasticities based on cross-country micro data: A bridge between micro and macro estimates?
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI). Luxembourg Income Study, Luxembourg.
Number of Authors: 3
2015 (English)In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 127, 87-99 p.Article in journal (Refereed) Published
Abstract [en]

The Nordic model relies on high tax rates to finance an extensive welfare state. If labour supply elasticities are large, the burden of financing the model can be large even if, arguably, the practice of providing subsidised goods that support labour supply is likely to mitigate these effects. We utilise repeated cross sections of micro data from several countries, including the four major Nordic countries, available from the Luxembourg Income Study, LIS, to estimate labour supply elasticities, both at the intensive and extensive margins. The data span over four decades and include a large number of tax reform episodes, with tax rate variation arising both from cross-sectional and country-level differences. Using these data, we investigate whether micro and macro estimates differ in a systematic way. The results do not provide strong support for the view that elasticities at the macro level would be higher than the corresponding micro elasticities.

Place, publisher, year, edition, pages
2015. Vol. 127, 87-99 p.
Keyword [en]
Labour supply, Taxation, Cross-country comparisons
National Category
Economics and Business
URN: urn:nbn:se:su:diva-119307DOI: 10.1016/j.jpubeco.2014.12.006ISI: 000357904800008OAI: diva2:844070
Available from: 2015-08-03 Created: 2015-08-03 Last updated: 2015-08-03Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Jäntti, Markus
By organisation
The Swedish Institute for Social Research (SOFI)
In the same journal
Journal of Public Economics
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 24 hits
ReferencesLink to record
Permanent link

Direct link