This paper estimates the employment effects of the Swedish trainee replacement schemes (an active labour market program that was in operation during the 1990s). The empirical analysis exploits a large and rich administrative data set, and we control for observed and unobserved selection bias by...

The two perhaps most influential empirical labor supply studies carried out in the U.S. in recent years, Hausman (1981) and MaCurdy, Green & Paarsch (1990), report sharply contradicting labor supply estimates. In this paper we seek to uncover the driving forces behind the seemingly...

We examine how tax avoidance in the form of trade in well-functioning asset markets affects the empirical study of labor supply. We discuss the implications for tax policy analysis, and we show that a failure to account for avoidance responses may lead to huge errors when predicting how tax...