TY  - RPRT
        AU  - Caliendo, Marco
AU  - Gambaro, Ludovica
AU  - Haan, Peter
        TI  - The Impact of Income Taxation on the Ratio between Reservation and Market Wages and the Incentives for Labour Supply
        PY  - 2007/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2599
        UR  - https://www.iza.org/publications/dp2599
        AB  - This paper extends previous research about the determinants of reservation wages by analysing the effect of progressive income taxation on the ratio between reservation and net market wages. Based on micro data for Germany (SOEP) we show that joint income taxation in Germany which discriminates by marital status, has a strong and highly significant impact on the reservation/market wage ratio. Relative to single filers, this leads to strong negative labour supply incentives for secondary earners and to positive incentives for first earners in married couples.
        KW  - reservation/ market wage ratio
KW  - income taxation
KW  - labour supply
KW  - microsimulation
        ER  -