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Labour-supply elasticities Income elasticityCompensated wage elasticity Sweden Men-0,1 – 0,00,08 – 0,24 Women-0,24 – -0,030,22 – 1,07 UK Married men-0.360.13.

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Presentation on theme: "Labour-supply elasticities Income elasticityCompensated wage elasticity Sweden Men-0,1 – 0,00,08 – 0,24 Women-0,24 – -0,030,22 – 1,07 UK Married men-0.360.13."— Presentation transcript:

1 Labour-supply elasticities Income elasticityCompensated wage elasticity Sweden Men-0,1 – 0,00,08 – 0,24 Women-0,24 – -0,030,22 – 1,07 UK Married men-0.360.13 Married women-0.220.65 Lone mothers-0.521.28 Sources: Agell et al. (1995) and Blundell (1992)

2 Source: Flood (2010)

3 Simulated changes in labour supply from the Swedish 2008 reform (the enforced in-work deduction) Participation before Participation after % change in hours conditional on working % change in hours totally Low0.340.382.216.2 Medium0.830.840.10.8 High0.95 -0.2 All0.740.750.11.8 Source: Flood (2008)

4 Table 15.3 (ε=1) IncomeAverage tax (%)Marginal tax (%) 0-30 0.05-6634 0.10-3432 0.20728 0.301325 0.401622 0.501720 Source: Mirrlees (1971)

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