Labour Supply Responses to Income Tax Changes in Spain

  1. ANTONIO CUTANDA 1
  2. JUAN A. SANCHIS-LLOPIS 1
  1. 1 Universitat de València
    info

    Universitat de València

    Valencia, España

    ROR https://ror.org/043nxc105

Revista:
Hacienda Pública Española / Review of Public Economics

ISSN: 0210-1173

Año de publicación: 2023

Título del ejemplar: Special issue of the “Meeting on public economics 2022”

Número: 245

Páginas: 71-94

Tipo: Artículo

DOI: 10.7866/HPE-RPE.23.2.3 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Hacienda Pública Española / Review of Public Economics

Resumen

This paper simulates the response of the Spanish labour supply to income tax changes using estimates for the intertemporal elasticity of substitution of leisure, calculated using a pseudo-panel built combining information from the EPA and the ECPF, for the period 1987-1997. According to our findings, income tax reforms have an impact on Spanish labour market, although the effects are quite small, making this mechanism a restricted tool for addressing the country’s existing social security system deficit. Further, labour responses differ for men and women, across workers’ age, as well as between permanent and fixed-term contract workers.

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