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Non-bunching at kinks and notches in cash transfers in the Netherlands

Author

Listed:
  • Nicole Bosch

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Egbert Jongen

    (CPB Netherlands Bureau for Economic Policy Analysis
    Leiden University
    IZA)

  • Wouter Leenders

    (University of Zurich)

  • Jan Möhlmann

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

We study the behavioural responses to kinks and notches in the Dutch system of cash transfers, using data on the universe of Dutch households for the period 2007–2014. We typically do not find statistically significant evidence of bunching around kinks or notches, neither in income nor in wealth. This finding is robust across different household types and modes of employment. We consider potential mechanisms that can explain this apparent lack of bunching.

Suggested Citation

  • Nicole Bosch & Egbert Jongen & Wouter Leenders & Jan Möhlmann, 2019. "Non-bunching at kinks and notches in cash transfers in the Netherlands," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(6), pages 1329-1352, December.
    • Handle: RePEc:kap:itaxpf:v:26:y:2019:i:6:d:10.1007_s10797-019-09555-8
    DOI: 10.1007/s10797-019-09555-8
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    Cited by:

    1. Nazila Alinaghi & John Creedy & Norman Gemmell, 2023. "Do couples bunch more? Evidence from partnered and single taxpayers," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(4), pages 1137-1184, August.
    2. Wiljan van den Berge & Egbert Jongen & Karen van der Wiel, 2023. "The effects of a tax deduction for lifelong learning expenditures," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(3), pages 729-756, June.
    3. José Torres Remírez* & Eduardo Gómez Melero & Eva López González, 2024. "Bunching en España (1982-1998). Las rentas bajas frente a las modificaciones del tipo marginal," Hacienda Pública Española / Review of Public Economics, IEF, vol. 250(3), pages 33-67, September.
    4. Egbert L. W. Jongen & Maaike Stoel, 2019. "The Elasticity of Taxable Labour Income in the Netherlands," De Economist, Springer, vol. 167(4), pages 359-386, December.
    5. de Boer, Henk-Wim & Jongen, Egbert L. W., 2020. "Analysing Tax-Benefit Reforms in the Netherlands: Using Structural Models and Natural Experiments," IZA Discussion Papers 12892, Institute of Labor Economics (IZA).
    6. Michaël Sicsic, 2022. "Does labour income react more to income tax or means‐tested benefits reforms?," Fiscal Studies, John Wiley & Sons, vol. 43(3), pages 291-319, September.
    7. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "Do Couples Bunch More? Evidence from Partnered and Single Taxpayers in New Zealand," Working Paper Series 9366, Victoria University of Wellington, Chair in Public Finance.
    8. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2020. "Do Couples Bunch More? Evidence from Partnered and Single Taxpayers in New Zealand," Working Paper Series 21094, Victoria University of Wellington, Chair in Public Finance.
    9. Stuart Adam & James Browne & David Phillips & Barra Roantree, 2021. "Frictions and taxpayer responses: evidence from bunching at personal tax thresholds," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(3), pages 612-653, June.
    10. Henk-Wim Boer & Egbert L. W. Jongen, 2023. "Analysing tax-benefit reforms in the Netherlands using structural models and natural experiments," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 179-209, January.
    11. Massenz, Gabriella, 2023. "On the behavioral effects of tax policy," Other publications TiSEM eb44a9f7-b859-480d-b2e4-4, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    Bunching; Cash transfers; Income; Wealth;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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