Labor Supply, Overtime Work and Taxation in Denmark

University of Aarhus CLS Working Paper No. 98-006

46 Pages Posted: 25 Aug 1999

See all articles by Ebbe Krogh Graversen

Ebbe Krogh Graversen

Aarhus University - Department of Economics and Business Economics; Danish National Institute of Social Research (SFI); Aarhus University - Centre for Research in Social Integration and Marginalization (CIM)

Nina Smith

Aarhus University - Department of Economics and Business Economics; IZA Institute of Labor Economics

Date Written: August 1998

Abstract

Traditionally labor supply data does not include explicit information on hours and wages in secondary job or overtime work. We compare the estimated labor supply responses based on budget constraints reflecting detailed information on wages in overtime work and second job with the estimates based on budget constraints which do not include information on overtime work or second jobs. The estimated elasticities are numerically larger when explicit information on overtime and second job work is taken into account. Based on the estimations, we simulate the supply responses of a financed Earned-Income-Tax-Credit (EITC) tax reform which has been proposed lately in Denmark.

JEL Classification: C13, C21, C24, H24, J22

Suggested Citation

Graversen, Ebbe Krogh and Smith, Nina, Labor Supply, Overtime Work and Taxation in Denmark (August 1998). University of Aarhus CLS Working Paper No. 98-006, Available at SSRN: https://ssrn.com/abstract=176076 or http://dx.doi.org/10.2139/ssrn.176076

Ebbe Krogh Graversen (Contact Author)

Aarhus University - Department of Economics and Business Economics ( email )

Fuglesangs Allé 4
Aarhus V
Denmark
+45 8942 2360 (Phone)

Danish National Institute of Social Research (SFI)

Herluf Trolles Gade 11
DK-1052 Kopenhagen
Denmark

Aarhus University - Centre for Research in Social Integration and Marginalization (CIM) ( email )

DK-8210 Aarhus V
Denmark

Nina Smith

Aarhus University - Department of Economics and Business Economics ( email )

Universitetsparken
DK-8000 Aarhus C
Denmark
+45 8948 6413 (Phone)
+45 8615 5175 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
219
Abstract Views
2,239
Rank
252,827
PlumX Metrics