We extend the collective model of household behavior to allow for the existence of public consumption. Under a separability assumption, we show that the observation of the labor supplies and the household demand for the public good allow to identify preferences and the decision process up to...

This paper provides a non-technical review of the evidence on the returns to education and training for the individual, the firm and the economy at large. It begins by reviewing the empirical work that has attempted to estimate the true causal effect of education and training on individual...

The 1980s' tax reforms and the changing dispersion of wages offer one of the best opportunities yet to estimate labour supply effects. Nevertheless, changing sample composition, aggregate shocks, the changing composition of the tax paying population and discontinuities in the tax system create...

This paper examines changes in the distribution of wages using bounds to allow for the impact of non-random selection into work. We show that bounds constructed without any economic or statistical assumptions can be informative. However, since employment rates in the UK are often low they are...

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A model is developed that allows for a layoff rate and a job arrival rate in the intertemporal choice of consumption and labor market state. The identification of such a model is established without recourse to dynamic programming solutions and the minimum data requirements for estimation are...

In October 1999, the working families’ tax credit (WFTC) replaced family credit as the main package of in-work support for families with children. Among a range of stated aims, the WFTC is intended to ‘... improve work incentives, encouraging people without work to move into employment’....

In this paper we examine the labour market impact of the proposed new earned income tax credit - Working Families Tax Credit - in the U.K. Family labour supply behaviour is modelled as a discrete choice among a finite set of hours alternatives. Our estimation strategy allows for a random...