Cookies?
Library Header Image
LSE Research Online LSE Library Services

Labour supply, search and taxes

Manning, Alan (2000) Labour supply, search and taxes. CEPDP, 449. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753013649

[img]
Preview
PDF
Download (109Kb) | Preview

Abstract

Classical labour supply theory is one of the most sophisticated parts of labour economics. Yet, there is no compelling theoretical reason to believe in an outcome on a classical labour supply curve and it is unclear whether it is a good empirical description of the way in which labour markets actually work. This paper uses the techniques of search theory to analyse the impact of changes in the tax system on incentives to work when individuals do not have flexibility of hours within jobs. It is shown how the traditional comparative statics are of some use but are rarely the whole story and some comparative statics results are surprising. For example, it is shown how a revenue-neutral increase in marginal tax rates will increase incentives to work.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 2000 Alan Manning
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HJ Public Finance
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 449
Date Deposited: 30 Jul 2008 16:23
URL: http://eprints.lse.ac.uk/20202/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only