EQUILIBRIUM SEARCH AND TAX CREDIT REFORM

• 成果类型: Article
• 署名作者: Shephard, Andrew
• 署名单位: University of Pennsylvania
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12245
• 发表日期: 2017
• 页码: 1047-1088
• 关键词: job search; LABOR; IMPACT; MODEL; families; wages; work

摘要

An empirical equilibrium job search model with wage posting is developed to analyze the impact of U.K. tax reforms. The model allows for a rich characterization of the labor market, with hours responses, accurate representations of the tax and transfer system, and both worker and firm heterogeneity. The British Working Families' Tax Credit and contemporaneous reforms are predicted to increase employment, with equilibrium effects found to be relatively modest. The model is used to assess the impact of alternative policies, with equilibrium effects shown to become important as the generosity of tax credits is increased.