IZA - A Structural Approach to Estimating the Effect of Taxation on the Labor Market Dynamics of Older Workers |
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by Peter Haan, Victoria L. Prowse
(March 2009)
forthcoming in: Econometrics Journal
Abstract:
We estimate a dynamic structural life-cycle model of employment, non-employment and retirement that includes endogenous accumulation of human capital and intertemporal non-separabilities in preferences. Additionally, the model accounts for the effect of the tax and transfer system on work incentives. The structural parameter estimates are used to evaluate the effects of a tax reform targeted at low income individuals on employment behavior and retirement decisions.
Text: See Discussion Paper No. 4102
