2016

The Swedish Earned Income Tax Credit: Did It Increase Employment?

Särtryck nr 2016:58

Författare: Karin Edmark, Che-Yuan Liang, Eva Mörk och Håkan SelinÅr: 2016 Publikation: FinanzArchiv: Public Finance Analysis Årgång (nr): 72 (4) Sidor: 475–503
Artikeln online (behörighet kan krävas)
Preliminär version


This paper analyzes the extensive-margin labor-supply effects of a Swedish earned income tax credit introduced in 2007. The reform was one of the government's flagship reforms to boost employment, but its actual effects have been widely debated. We exploit the fact that the size of the tax credit is a function of the municipality of residence and income if working, which yields two sources of quasi-experimental variation. The identifying variation, however, turns out to be small and potentially endogenous, which means that the question of whether the reform has delivered the hoped-for effects cannot be credibly answered.


Referens:
Edmark, Karin, Che-Yuan Liang, Eva Mörk och Håkan Selin (2016), "The Swedish Earned Income Tax Credit: Did It Increase Employment?". FinanzArchiv: Public Finance Analysis 72(4), 475–503.

Karin Edmark

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karin.edmark@sofi.su.se

Aktuell forskare

Henrik Jordahl

Forskningsområden: Skattefinansierade tjänster, privatiseringar samt väljarbeteende.

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