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Estimating labour supply elasticities based oncross-country micro data: A bridge between micro andmacro estimates?
Swedish Institute for Social Research, Stockholm University.
School of Management, University of Tampere.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
2013 (English)Report (Other academic)
Abstract [en]

We utilise repeated cross sections of micro data from several countries, available from the Luxembourg

Income Study, LIS, to estimate labour supply elasticities, both at the intensive and extensive

margin. The benefit of the data is that it spans over four decades and includes 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 clear support to the view that elasticities at the macro level would

be higher than corresponding micro elasticities

Place, publisher, year, edition, pages
Uppsala: Department of Economics , 2013. , 35 p.
Working paper / Uppsala Center for Fiscal Studies, Uppsala University, 2013:1
Keyword [en]
Labour supply, earnings, taxation, cross-country comparisons
National Category
Research subject
URN: urn:nbn:se:uu:diva-192288OAI: diva2:589275
Available from: 2013-01-23 Created: 2013-01-17 Last updated: 2013-01-23Bibliographically approved

Open Access in DiVA

fulltext(645 kB)