The Elasticity of Taxable Labour Income in the Netherlands
Abstract
We study the elasticity of taxable labour income in the Netherlands. We use a large and rich data set, including both financial and demographic variables, for the period 1999–2005. The 2001 tax reform generates large exogenous variation in marginal tax rates at different segments of the income distribution. For all workers, we find an elasticity of 0.10 in the short run, 1 year after the reform, rising to 0.24 in the medium to longer run, 5...
Paper Details
Title
The Elasticity of Taxable Labour Income in the Netherlands
Published Date
Aug 27, 2019
Journal
Volume
167
Issue
4
Pages
359 - 386
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