Effect of the Flat Tax Reform on Labour Supply Elasticity at the Intensive and Extensive Margins: Evidence from the Czech Republic
| Author: | Mgr. Ján Tomo |
|---|---|
| Year: | 2015 - summer |
| Leaders: | Mgr. Barbara Pertold-Gebicka M.A., Ph.D. |
| Consultants: | |
| Work type: | Finance, Financial Markets and Banking Masters |
| Language: | English |
| Pages: | 71 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/151808/ |
| Abstract: | The thesis deals with the estimation of labour supply responses to the personal income tax reform in the Czech Republic adopted in 2008 by applying quasi experimental design known as “difference-in-differences”. By exploiting the different change in the effective tax rates for various population subgroups as a natural experiment and using microdata from European Labour Force Survey we constructed the treatment and control groups according to the highest attained level of education serving as a proxy for an income range that assigns an individual to the particular tax bracket before and after policy change. Analysing one-person households we found significant negative effect on the labour force participation and significant positive effect on the hours work of the treated by comparing these outcomes for the treatment and control groups in the baseline and follow up periods before and after the reform. |
