scholarly journals Consumption Insurance Against Wage Risk: Family Labor Supply and Optimal Progressive Income Taxation

2019 ◽  
Author(s):  
Chunzan Wu ◽  
Dirk Krueger
Keyword(s):  
Labor Supply ◽  
Income Taxation ◽  
Family Labor ◽  
Consumption Insurance ◽  
Wage Risk ◽  
Progressive Income Taxation

scholarly journals Consumption Insurance against Wage Risk: Family Labor Supply and Optimal Progressive Income Taxation

2021 ◽  
Vol 13 (1) ◽  
pp. 79-113
Author(s):  
Chunzan Wu ◽  
Dirk Krueger
Keyword(s):  
Life Cycle ◽  
Labor Supply ◽  
Income Taxation ◽  
Consumption Insurance ◽  
Empirical Estimates ◽  
Welfare Losses ◽  
Insurance Mechanism ◽  
Wage Risk ◽  
Progressive Income Taxation ◽  
Wage Shocks

We show that a calibrated life cycle two-earner household model with endogenous labor supply can rationalize the extent of consumption insurance against shocks to male and female wages, as estimated empirically by Blundell, Pistaferri, and Saporta-Eksten (2016) in US data. In the model, 35 percent of male and 18 percent of female permanent wage shocks pass through to consumption, compared to the empirical estimates of 32 percent and 19 percent. Most of the consumption insurance against permanent male wage shocks is provided through the presence and labor supply response of the female earner. Abstracting from this private intrahousehold income insurance mechanism strongly biases upward the welfare losses from idiosyncratic wage risk as well as the desired extent of public insurance through progressive income taxation. Relative to the standard one-earner life cycle model, the optimal degree of tax progressivity is significantly lower and the welfare gains from implementing the optimal system are cut roughly in half. (JEL D15, H21, H24, J16, J22, J31)

scholarly journals Progressive Income Taxation and Economic Growth with Endogenous Labor Supply and Public Good

2015 ◽  
Vol 3 (1) ◽  
pp. 238
Author(s):  
Wei Bin Zhang
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Labor Supply ◽  
Economic System ◽  
Income Taxation ◽  
Dynamic Interactions ◽  
Endogenous Labor Supply ◽  
And Gender ◽  
Endogenous Labor ◽  
Progressive Income Taxation

This study builds an economic growth model of gender division labor, endogenous labor supply with nonlinear progressive income taxation. The tax income is spent on supplying public goods. The economic system consists of one production sector and one public sector. The public sector is financially supported by tax incomes. The model describes dynamic interactions of growth and gender division of labor with progressive income taxation. We simulate the model to demonstrate existence of equilibrium and motion of the dynamic system. We also examine effects of changes in different parameters on the motion of the economic system.

scholarly journals Disability Benefits, Consumption Insurance, and Household Labor Supply

2019 ◽  
Vol 109 (7) ◽  
pp. 2613-2654 ◽  
Author(s):  
David Autor ◽  
Andreas Kostøl ◽  
Magne Mogstad ◽  
Bradley Setzler
Keyword(s):  
Willingness To Pay ◽  
Labor Supply ◽  
Instrumental Variables ◽  
Revealed Preferences ◽  
Net Income ◽  
Family Labor ◽  
Consumption Insurance ◽  
Welfare Implications ◽  
Spousal Labor ◽  
Instrumental Variables Approach

There is no evaluation of the consequences of Disability Insurance (DI) receipt that captures the effects on households’ net income and consumption expenditure, family labor supply, or benefits from other programs. Combining detailed register data from Norway with an instrumental variables approach based on random assignment to appellant judges, we comprehensively assess how DI receipt affects these understudied outcomes. To consider the welfare implications of the findings from this instrumental variables approach, we estimate a dynamic model of household behavior that translates employment, reapplication, and savings decisions into revealed preferences for leisure and consumption. The model-based results suggest that on average, the willingness to pay for DI receipt is positive and sizable. Because spousal labor supply strongly buffers the household income and consumption effects of DI allowances, the estimated willingness to pay for DI receipt is smaller for married than single applicants. (JEL D12, D14, H55, I38, J14, J22)

scholarly journals How Much Consumption Insurance in Bewley Models with Endogenous Family Labor Supply?

2018 ◽  
Author(s):  
Chunzan Wu ◽  
Dirk Krueger
Keyword(s):  
Labor Supply ◽  
Family Labor ◽  
Consumption Insurance

scholarly journals Adapting Income Taxation to the Labor Market Changes

2021 ◽  
Vol 31 (2) ◽  
pp. 167-178
Author(s):  
Anna Kireenko ◽  
Svetlana Sodnomova
Keyword(s):  
Labor Market ◽  
Income Taxation ◽  
Work Skills ◽  
Digital Platforms ◽  
Gig Economy ◽  
Tax Deductions ◽  
Data Statistics ◽  
Market Trends ◽  
Progressive Income Taxation ◽  
Market Changes

The article is concerned with the analysis of the labor market changes, requiring the personal income tax reform. Methods of comparative and statistical analysis are applied. Rating and analytical agencies data, statistics from the OECD, Eurofond and Eurostat used as the empirical base of the study. Three labor market trends requiring appropriate changes in taxation were identified. The first trend is the change in the demand for work skills, which requires a more flexible approach to educational tax deductions and tax incentives for training in high-demand digital professions. The second trend is digital platforms and the gig economy that enhance income differentiation, which inevitably raises the question of progressive income taxation. The third trend is an increase in non-standard employment. The article analyzes such forms of non-standard employment as work on the basis of vouchers, platform work, joint employment, casual labour which are associated with the ambiguous status of employment and require changes in tax policy to regulate them.

scholarly journals Disability Benefits, Consumption Insurance, and Household Labor Supply

2017 ◽  
Author(s):  
David Autor ◽  
Andreas Ravndal Kostol ◽  
Magne Mogstad ◽  
Bradley Setzler
Keyword(s):  
Labor Supply ◽  
Household Labor ◽  
Disability Benefits ◽  
Household Labor Supply ◽  
Consumption Insurance

The effects of social security in a life cycle family labor supply simulation model

1991 ◽  
Vol 46 (2) ◽  
pp. 199-226 ◽  
Author(s):  
Ben Craig ◽  
Raymond G. Batina
Keyword(s):  
Life Cycle ◽  
Social Security ◽  
Labor Supply ◽  
Simulation Model ◽  
Family Labor

scholarly journals Family Labor Supply Responses to Severe Health Shocks

2015 ◽  
Author(s):  
Itzik Fadlon ◽  
Torben Heien Nielsen
Keyword(s):  
Labor Supply ◽  
Health Shocks ◽  
Family Labor

Family Labor Supply Responses to Severe Health Shocks: Evidence from Danish Administrative Records

2021 ◽  
Vol 13 (3) ◽  
pp. 1-30
Author(s):  
Itzik Fadlon ◽  
Torben Heien Nielsen
Keyword(s):  
Labor Supply ◽  
Insurance Coverage ◽  
Driving Mechanism ◽  
Health Shocks ◽  
Family Labor ◽  
Administrative Records ◽  
The Family ◽  
Short Run ◽  
Spousal Labor ◽  
New Evidence

We provide new evidence on households’ labor supply responses to fatal and severe nonfatal health shocks in the short run and medium run. To identify causal effects, we leverage administrative data on Danish families and construct counterfactuals using households that experience the same event a few years apart. Fatal events lead to considerable increases in surviving spouses’ labor supply, which the evidence suggests is driven by families who experience significant income losses. Nonfatal shocks have no meaningful effects on spousal labor supply, consistent with their adequate insurance coverage. The results support self-insurance as a driving mechanism for the family labor supply responses. (JEL D12, D15, G22, I12, J22)

Are Children and Parents Substitutes or Complements in the Family Labor Supply Decision in Bangladesh?

2006 ◽  
Vol 40 (1) ◽  
pp. 15-37 ◽  
Author(s):  
Shahina Amin ◽  
Shakil. Quayes ◽  
Janet M. Rives
Keyword(s):  
Labor Supply ◽  
Family Labor ◽  
Children And Parents ◽  
The Family ◽  
Labor Supply Decision
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