Intertemporal Labor Supply Substitution? Evidence from the Swiss Income Tax Holidays
OPEN ACCESS
Loading...
Author / Producer
Date
2021-02
Publication Type
Journal Article
ETH Bibliography
yes
Citations
Altmetric
OPEN ACCESS
Data
Rights / License
Abstract
This paper estimates intertemporal labor supply responses to two-year long income tax holidays staggered across Swiss cantons. Cantons shifted from an income tax system based on the previous two years' income to a standard annual pay as you earn system, leaving two years of income untaxed. We find significant but quantitatively very small responses of wage earnings with an inter-temporal elasticity of .025 overall. High wage income earners and especially the self-employed display larger responses with elasticities around .1 and .25 respectively, most likely driven by tax avoidance. We find no effects along the extensive margin at all.
Permanent link
Publication status
published
External links
Editor
Book title
Journal / series
Volume
111 (2)
Pages / Article No.
506 - 546
Publisher
American Economic Association
Event
Edition / version
Methods
Software
Geographic location
Date collected
Date created
Subject
Tax holidays; Labor supply; Frisch elasticity; Intertemporal labor supply elasticity; Income shifting; Income taxes; Tax avoidance
Organisational unit
06330 - KOF FB Konjunktur / KOF Macroeconomic forecasting
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute