Haan, Peter; Prowse, Victoria; Uhlendorff, Arne - University <Oxford> / Department of Economics - 2008
In this paper we develop a dynamic structural life-cycle model of labor supplybehavior which fully accounts for the … eects of income tax and transfers on la-bor supply incentives. Additionally, the model recognizes the demand side … unemployment. We use this framework tostudy the employment eects of transforming a traditional welfare state, as is cur-rently in …