@TechReport{iza:izadps:dp17600,
            	author={Barbanchon, Thomas Le},
            	title={Taxes Today, Benefits Tomorrow},
            	year={2025},
	month={Jan},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17600},
            	url={https://www.iza.org/publications/dp17600},
	abstract={This paper tests whether partially unemployed workers value future preserved benefits when they bunch at the kink of the unemployment insurance benefit-withdrawal schedule. I extend the bunching formula of Saez (2010) to a dynamic setting that accounts for the value of future benefits tied to taxation. This yields new tests of tax-benefit linkage based on bunching heterogeneity. I verify in quasi-experiments that UI extension programs that decrease the value of future benefits lead to more bunching and to lower labor supply. Last, a quantification exercise of the dynamic bunching formula provides extra support for a strong tax-benefit linkage.},
	keywords={tax-benefit linkage;bunching;unemployment insurance},
            }