TY  - RPRT
        AU  - Flood, Lennart
AU  - Hansen, Jörgen
AU  - Wahlberg, Roger
        TI  - Household Labor Supply and Welfare Participation in Sweden
        PY  - 2003/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 769
        UR  - https://www.iza.org/publications/dp769
        AB  - In this paper, we formulate and estimate a structural, static model of household labor supply
and multiple welfare program participation. Given the complicated nature of both the income
tax schedule and the benefit rules for different welfare programs, we use unique access to a
very detailed micro-simulation model to generate accurate budget sets for each work-welfare
combination. Moreover, when determining the budget sets, we use extraordinary high-quality
data on earnings and other types of incomes, obtained both from employers and from income
tax records. The results suggest that labor supply among two-parent families in Sweden is
quite inelastic. A policy simulation designed to increase labor supply incentives for low
income families generated substantial positive welfare effects, despite only minor increases
in labor supply and decreases in welfare participation.
        KW  - unobserved heterogeneity
KW  - welfare
KW  - household labor supply
        ER  -