Discrete-choice models provide a simple way of representing utility-maximizing labor supply decisions in the presence of highly nonlinear and possibly non-convex budget constraints. Thus, it is not surprising that they are so extensively used for ex-ante evaluation of tax-benefit reforms. The...

Discrete-choice models of labor supply have become very popular for ex ante evaluations of policy reforms as they easily account for non-convex budget sets. We test the constraints imposed in practice on these models and suggest a fully flexible model that significantly improves fit. --...

Discrete choice models of labor supply easily account for nonlinearty and nonconvexity in budget sets caused by tax-benefit systems. As a result, they have become very popular for ex ante evaluations of policy reforms. In this paper, we question whether the degree of flexibility and the implicit...

Despite numerous studies on labor supply, the size of elasticities is rarely comparable acrosscountries. In this paper, we suggest the first large-scale international comparison ofelasticities, while netting out possible differences due to methods, data selection and theperiod of investigation....

Whether observed differences in redistributive policies across countries are the result ofdifferences in social preferences or efficiency constraints is an important question that pavesthe debate about the optimality of welfare regimes. To shed new light on this question, weestimate labor supply...

By inverting Saez (2002)’s model of optimal income taxation, we characterize theredistributive preferences of the Irish government between 1987 and 2005. The (marginal)social welfare function revealed by this approach is consistently comparable over time andshow great stability despite...

Discrete-choice models of labor supply have become very popular for ex ante evaluations ofpolicy reforms as they easily account for non-convex budget sets. We test the constraintsimposed in practice on these models and suggest a fully flexible model that significantlyimproves fit....

Earning an income is probably the best way of avoiding poverty and social exclusion, hence the recent trend of promoting employment through in-work transfers in OECD countries. Yet, the relative consensus on the need for ?making work pay? policies is muddied by a number of concerns relative to...