Increasing Hours Worked: Moonlighting Responses to a Large Tax Reform

• 成果类型: Article
• 署名作者: Tazhitdinova, Alisa
• 署名单位: University of California System; University of California Santa Barbara; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20190786
• 发表日期: 2022
• 页码: 473-500
• 关键词: taxable income; job; elasticity; arrangements; difference; TRENDS

摘要

Moonlighting is increasingly popular in OECD countries, with 5 to 10 percent of workers holding two or more jobs. However, little is known about the responsiveness of moonlighting to financial incentives due to the lack of identifying variation. This paper studies a unique reform in Germany that allowed workers to hold small secondary jobs tax-free, decreasing the marginal tax rate by between 19.5 to 66 pp. 1 show that the reform resulted in a dramatic increase in moonlighting that was not offset by reductions in primary earnings and that hours constraints are a key determinant of moonlighting.