Singles, couples, time-averaging, and taxation

• 成果类型: Article
• 署名作者: Holter, Hans A.; Ljungqvist, Lars; Sargent, Thomas J.; Stepanchuk, Serhiy
• 署名单位: University of Delaware; University of Oslo; Stockholm School of Economics; New York University; University of Southampton
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2024.103702
• 发表日期: 2025
• 关键词: Heterogeneous households; precautionary saving; labor supply; Time-averaging; Social Security; Flat-rate tax; Negative income tax; EITC

摘要

We study consequences of tax reforms in an incomplete markets overlapping generations model in which male and female workers with different ability levels self-insure by acquiring a risk- free bond, time-averaging their life-cycle work schedules and career lengths, and possibly by marrying and divorcing. We study incidences of a flat-rate tax and in combination with stylized versions of a negative income tax (NIT) or an earned income tax credit (EITC). Tax reforms have diverse effects that differ by workers' abilities, marital statuses, and ages. A new ex post-ex ante criterion helps us to sort through welfare incidences. The importance of labor supply responses at the extensive margin makes the EITC better for redistribution than the NIT.