First published in 1981. This book reports on a decade of research into the effects of taxation on the supply of labour. In addition to their work in making labour supply estimates, the study explores a number of the ways labour supply estimates can be used. When budget constraints are non-linear it is not possible to estimate the effects of (tax) or other policy changes from knowledge of labour supply elasticities alone, and it is necessary to re-estimate the original model used to derive the estimates. The implications of labour supply estimates for the study of inequality and optimal taxation are considered. Macro-economic models of the economy typically omit labour supply functions or include functions which are inconsistent with micro-economic work on labour supply.
This book will appeal to academic economists, senior students and policy-makers in the field of public finance and labour economics, who will find much of interest from both the theoretical and policy standpoints.
Table of Contents
List of Documents; Acknowledgements; 1. Introduction C. V. Brown; Part One: The Data; 2. Sample Selection and Questionnaire Design C. V. Brown 3. Data Quality C. V. Brown; Part Two: The Results; 4. The Interview Approach C. V. Brown and E. Levin 5. The Basic Model C. V. Brown, E. Levin and D. T. Ulph 6. Endogeneity I: Estimating Labour Supply with Piecewise Linear Budget Constraints J. S. Ashworth and D. T. Ulph 7. Preferences K. Glaister, A. McGlone and R. J. Ruffell 8. Endogeneity II: Direct Estimation of Labour Supply Functions with Piecewise Linear Budget Constraints R. J. Ruffell 9. Household Models J. S. Ashworth and D. T. Ulph 10. Summary of Results C. V. Brown; Part Three: Implications; 11. Labour Supply, Taxation and the Measurement of Inequality D. T. Ulph 12. Labour Supply Responses to Tax Changes: A Simulation Exercise for the UK K. W. Glaister, A. McGlone and D. T. Ulph 13. Implications for Optimal Income Taxation D. T. Ulph and A. M. Ulph 14. Macroeconomic Implications I: Income Taxation and Employment. An Integration of Neoclassical and Keynesian Approaches C. V. Brown 15. Macroeconomic Implications II: Labour Supply and Fiscal Policy in a Disequilibrium Model K. W. Glaister 16. Inflation, Taxation and Income Distribution C. V. Brown, E. Levin and D. T. Ulph; Bibliography; Appendix; Index