A structural approach to estimating the effect of taxation on the labor market dynamics of older workers

Peter Haan; Victoria Prowse

We estimate a dynamic structural life-cycle model of employment, non-employment and retirement that includes endogenous accumulation of human capital and intertemporal non- separabilities in preferences. Additionally, the model accounts for the effect of the tax and transfer system on work incentives. The structural parameter estimates are used to evaluate the effects of a tax reform targeted at low income individuals on employment behavior and retirement decisions. -- Life-cycle labor supply ; income taxation

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Year of publication:	2009
Authors:	Haan, Peter ; Prowse, Victoria
Publisher:	Berlin : DIW
Subject:	Einkommensteuer \| Income tax \| Steuerreform \| Tax reform \| Steuerwirkung \| Tax effects \| Arbeitsangebot \| Labour supply \| Lebenszyklus \| Life cycle \| Altersgrenze \| Retirement \| Anreiz \| Incentives \| Schätzung \| Estimation \| Deutschland \| Germany