The effect of taxation on labour supply: the case of moonlighting

Autor:	C. R. Hill, Janet C. Hunt, B. F. Kiker
Rok vydání:	1985
Předmět:	Economics and Econometrics Labour economics Panel Study of Income Dynamics Short run Labour supply media_common.quotation_subject Economics Wage Tobit model Asset (economics) Supply and demand Tax rate media_common
Zdroj:	Applied Economics. 17:897-905
ISSN:	1466-4283 0003-6846
DOI:	10.1080/00036848500000043
Popis:	The authors provide a simple test of supply-side economics by estimating the responsiveness of moonlighting labour supply to changes in the marginal tax rate and the wage rate. While standard theory teachers that changes in taxes and wage should have opposite and equal effects on labour supply, taxes affect the entire asset position of the household. In the short run, an adjustment of hours in the second job may be the only option available to an individual in responding to a tax change. Thus, analyses based on after-tax wages may understate supply-side effects. To estimate these effects a tobit procedure is employed. The empirical results suggest a backward-bending supply curve over thet range of moonlighting hours. Data consist of a subsample of male blue-collar workers from the 1978 cross-section of the Panel study of Income Dynamics.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::575ab6f0aca0aed48c268feaa1b2be7b https://doi.org/10.1080/00036848500000043 Zobrazit plný text záznamu Plný text ve formátu PDF