IDEAS home Printed from https://ideas.repec.org/p/hoh/hohdip/188.html
   My bibliography  Save this paper

Incentive and Redistribution Effects of the German Tax Reform 2000

Author

Abstract

This paper analyzes the impact on work incentives and income distribution of the German tax reform 2000 and alternative tax regimes which might be viewed as examples for tax reforms on the agenda in Europe. The approach is based on a comprehensive microsimulation model for taxes, social security contributions and transfers in the Federal Republic of Germany, which is combined with a micro- econometric behavioral model. The main findings of the paper are: the tax reform 2000 generates positive labor supply incentives; almost all persons in dependent employment profit from the tax reform. However, a significant decline in unemployment cannot be expected as a result of the tax reform alone.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Gerhard Wagenhals, 2000. "Incentive and Redistribution Effects of the German Tax Reform 2000," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 188/2000, Department of Economics, University of Hohenheim, Germany.
    • Handle: RePEc:hoh:hohdip:188
    as

    Download full text from publisher

    File URL: http://www.uni-hohenheim.de/RePEc/hoh/papers/188.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
    2. Leora Friedberg, 2000. "The Labor Supply Effects of the Social Security Earnings Test," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 48-63, February.
    3. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695, Elsevier.
    4. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    5. Ian Walker & Ian Preston, 1999. "Welfare measurement in labour supply models with nonlinear budget constraints," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(3), pages 343-361.
    6. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard Ochmann, 2014. "Differential income taxation and household asset allocation," Applied Economics, Taylor & Francis Journals, vol. 46(8), pages 880-894, March.
    2. Andreas PEICHL, 2008. "The Benefits of Linking CGE and Microsimulation Models - Evidence from a Flat Tax analysis," EcoMod2008 23800106, EcoMod.
    3. Truger, Achim, 2004. "Verteilungs- und beschäftigungspolitische Risiken aktueller Steuerreformkonzepte: Eine Analyse mit Steuerbelastungsvergleichen für konkrete Haushaltstypen," WSI Working Papers 120, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    4. Maiterth Ralf, 2004. "Verteilungswirkungen alternativer Konzepte zur Familienförderung / Distributional Effects of Alternative Concepts of Family Support: Eine empirische Analyse auf Grundlage der Einkommensteuerstatistik ," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 224(6), pages 696-730, December.
    5. Kroh Tanja, 2016. "Wie wirken Steuern auf die Einkommens- und Vermögensverteilung?," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 65(1), pages 022-046, May.
    6. Richard Ochmann, 2010. "Distributional and Welfare Effects of Germany's Year 2000 Tax Reform," Discussion Papers of DIW Berlin 1083, DIW Berlin, German Institute for Economic Research.
    7. Heiko Müller & Caren Sureth, 2009. "Income tax statistics analysis: A comparison of microsimulation versus group simulation," International Journal of Microsimulation, International Microsimulation Association, vol. 2(1), pages 32-48.
    8. Truger, Achim & Jacoby, Wade, 2002. "Tax Reforms and "Modell Deutschland": Lessons from Four Years of Red-Green Tax-Policy," Institute of European Studies, Working Paper Series qt31866224, Institute of European Studies, UC Berkeley.
    9. Peter Haan & Viktor Steiner, 2004. "Distributional and Fiscal Effects of the German Tax Reform 2000: A Behavioral Microsimulation Analysis," Discussion Papers of DIW Berlin 419, DIW Berlin, German Institute for Economic Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christophe Kolodziejczyk, 2005. "Wives’ Labor Supply and Taxation: a Conditional Preferences Approach," CAM Working Papers 2005-02, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    2. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695, Elsevier.
    3. Philip Trostel & Ian Walker, 2006. "Education and Work," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 377-399.
    4. Anil Kumar, 2012. "Nonparametric estimation of the impact of taxes on female labor supply," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(3), pages 415-439, April.
    5. Olivier Bargain & Kristian Orsini & Andreas Peichl, 2014. "Comparing Labor Supply Elasticities in Europe and the United States: New Results," Journal of Human Resources, University of Wisconsin Press, vol. 49(3), pages 723-838.
    6. Volker Grossmann, 2003. "A Note on Redistributive Taxation, Labor Supply, and National Income," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 2(1), pages 39-48, April.
    7. Lusi Liao & Sasiwimon Warunsiri Paweenawat, 2021. "The inversion of married women's labour supply and wage: Evidence from Thailand," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 82-98, May.
    8. Francine D. Blau & Lawrence M. Kahn, 2007. "Changes in the Labor Supply Behavior of Married Women: 1980–2000," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 393-438.
    9. Wagenhals Gerhard, 2000. "Arbeitsangebotseffekte des Steuer- und Transfersystems in der Bundesrepublik Deutschland / Labour Supply Effects of the Tax and Benefit System in the Federal Republic of Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 220(2), pages 191-213, April.
    10. Michiel Evers & Ruud A. De Mooij & Daniel J. Van Vuuren, 2005. "What Explains the Variation in Estimates of Labour Supply Elasticities?," CESifo Working Paper Series 1633, CESifo.
    11. Olivier Bargain & Andreas Peichl, 2013. "Steady-State Labor Supply Elasticities: An International Comparison," AMSE Working Papers 1322, Aix-Marseille School of Economics, France.
    12. Olivier Bargain & Kristian Orsini & Andreas Peichl, 2012. "Comparing Labor Supply Elasticities in Europe and the US: New Results," Working Papers halshs-00805736, HAL.
    13. Barua, Rashmi, 2014. "Intertemporal substitution in maternal labor supply: Evidence using state school entrance age laws," Labour Economics, Elsevier, vol. 31(C), pages 129-140.
    14. Michael P. Keane, 2011. "Labor Supply and Taxes: A Survey," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 961-1075, December.
    15. John K. Dagsvik & Zhiyang Jia & Tom Kornstad & Thor O. Thoresen, 2014. "Theoretical And Practical Arguments For Modeling Labor Supply As A Choice Among Latent Jobs," Journal of Economic Surveys, Wiley Blackwell, vol. 28(1), pages 134-151, February.
    16. Håkan Selin, 2009. "The Rise in Female Employment and the Role of Tax Incentives - An Empirical Analysis of the Swedish Individual Tax Reform of 1971," CESifo Working Paper Series 2629, CESifo.
    17. Alpert, Abby & Powell, David, 2014. "Estimating Intensive and Extensive Tax Responsiveness: Do Older Workers Respond to Income Taxes?," Working Papers 987-1, RAND Corporation.
    18. Stevenson, Adam, 2012. "The Labor Supply and Tax Revenue Consequences of Federal Same-Sex Marriage Legalization," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(4), pages 783-806, December.
    19. Stephens, Melvin Jr & Ward-Batts, Jennifer, 2004. "The impact of separate taxation on the intra-household allocation of assets: evidence from the UK," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1989-2007, August.
    20. Oybek Yuldashev & Obid Khakimov, 2011. "Income Taxation And Labor Force Participation In Transition Economies: Evidence From Bulgaria, Russian Federation And Serbia," Anadolu University Journal of Social Sciences, Anadolu University, vol. 11(3), pages 177-198, September.

    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hoh:hohdip:188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ulrike Berberich (email available below). General contact details of provider: https://edirc.repec.org/data/ivhohde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.