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Proportional income taxation and heterogeneous labour supply responses : A study of gender-based heterogeneity in extensive margin labour supply decisions in response to changes in proportional income taxation in Swedish municipalities from 1960 to 1990

This thesis is, to my knowledge, the first study utilising data from the Swedish population and housing censuses between 1960 and 1990 merged with other data from the same period in order to estimate extensive margin labour supply responses to changes in municipal tax rate changes. Given that women historically have not faced the same structural labour market preconditions as men, the empirical strategy is designed to allow for an analysis of gender-based heterogeneity in labour supply responses. Using a weighted fixed effects framework, estimates of the average over time between municipal effects of tax rate increases are presented. Using the preferred main model specification, the estimate for the average tax rate elasticity is -0.165 for men and 0.3513 for women. Additionally, an attempt is made to estimate an effect using a difference-in-difference framework, treating the overall largest municipal tax rate changes as a form of quasi-experimental treatment. The results of the main analysis indicate the presence of gender-based heterogeneity in extensive margin labour supply responses during 1960 to 1990 within the administrative region in question.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-479559
Date January 2022
CreatorsSyrén, Elliott
PublisherUppsala universitet, Nationalekonomiska institutionen
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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