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Labor supply responses to the 1990s Japanese tax reforms

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  • Yamada, Ken

Abstract

The consumption-leisure choice model implies that an exogenous change in tax rates will induce a change in labor supply. This implication is expected to be important to labor supplied by secondary earners under a progressive tax system when spousal income alters effective marginal tax rates. This paper examines labor supply responses to the income tax changes associated with Japanese tax reforms during the 1990s. The results indicate that the hours-of-work elasticity with respect to the net-of-tax rate is 0.8 for married women.

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  • Yamada, Ken, 2011. "Labor supply responses to the 1990s Japanese tax reforms," Labour Economics, Elsevier, vol. 18(4), pages 539-546, August.
    • Handle: RePEc:eee:labeco:v:18:y:2011:i:4:p:539-546
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    Cited by:

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    2. Amadeo Fuenmayor & Rafael Granell & Mauro Mediavilla, 2018. "The effects of separate taxation on labor participation of married couples. An empirical analysis using propensity score," Review of Economics of the Household, Springer, vol. 16(2), pages 541-561, June.
    3. Hirokatsu Asano & Takahiro Ito & Daiji Kawaguchi, 2013. "Why Has the Fraction of Nonstandard Workers Increased? A Case Study of Japan," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(4), pages 360-389, September.
    4. Georg D. BLIND & Stefania LOTTANTI VON MANDACH, 2015. "Decades not Lost, but Won: Increased Employment, Higher Wages, and More Equal Opportunities in the Japanese Labour Market," Social Science Japan Journal, University of Tokyo and Oxford University Press, vol. 18(1), pages 63-88.
    5. ASANO Hirokatsu & ITO Takahiro & KAWAGUCHI Daiji, 2011. "Why Has the Fraction of Contingent Workers Increased? A case study of Japan," Discussion papers 11021, Research Institute of Economy, Trade and Industry (RIETI).
    6. Jeremy Lise & Ken Yamada, 2019. "Household Sharing and Commitment: Evidence from Panel Data on Individual Expenditures and Time Use," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(5), pages 2184-2219.
    7. Miyazaki, Takeshi & Ishida, Ryo, 2022. "Estimating the elasticity of taxable income: Evidence from top Japanese taxpayers," Japan and the World Economy, Elsevier, vol. 61(C).
    8. KITAO Sagiri & MIKOSHIBA Minamo, 2022. "Why Women Work the Way They Do in Japan: Roles of Fiscal Policies," Discussion papers 22016, Research Institute of Economy, Trade and Industry (RIETI).
    9. Ken Yamada, 2008. "Estimating labour supply and time allocation by married Japanese men and unmarried Japanese women," Applied Economics Letters, Taylor & Francis Journals, vol. 15(9), pages 659-666.

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    More about this item

    Keywords

    Labor supply elasticity Intertemporal labor supply Sample-selection correction model Quasi-experiment Tax reforms;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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