The effect of age-targeted tax credits on labor force participation of older workers

• 成果类型: Article
• 署名作者: Laun, Lisa
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2017.06.005
• 发表日期: 2017
• 页码: 102-118
• 关键词: labor supply; retirement; Earned Income Tax Credit; payroll taxes

摘要

I analyze the effect of income tax policy changes on labor force participation of older workers. I exploit two age-targeted policy initiatives to promote work at older ages simultaneously implemented in Sweden in 2007: an earned income tax credit and a payroll tax credit for workers above age 65. Using an age based discontinuity in eligibility criteria, I conduct a difference-in-differences analysis with the reform as an instrument for the net-of-tax rate. I find a participation elasticity with respect to the net-of-participation tax rate of about 0.22 in the year following the 65th birthday for individuals who were working four years earlier. (C) 2017 The Authors. Published by Elsevier Inc.