Redistribution and production with a subsistence income constraint a real-effort experiment Marina Chugunova, Andreas Nicklisch and Kai-Uwe Schnapp
By: Chugunova, Marina
.
Contributor(s): Nicklisch, Andreas | Schnapp, Kai-Uwe, Schnapp.
Material type: 
ArticleSubject(s): IMPUESTOS | RENTA | REDISTRIBUCION
In:
FinanzArchiv v. 78, n. 1-2, March/June 2022, p. 208-238Summary: A large body of experimental studies demonstrates that redistribution leads to inefficiencies due to distorted work incentives. Yet, this finding is typically obtained in environments where people are unconstrained in their labor-leisure allocation decisions. In this paper we study labor supply decisions in a framework with a subsistence income constraint and a redistribution system that supports disadvantaged members of a society in meeting the constraint. We document that while high-talent taxpayers perform equally well in all conditions, the less talented ones significantly decrease their performance in response to the introduction of the tax. The negative effect of taxation is mitigated if an income threshold is present and the tax is spent meaningfully.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 207/2022/1/2-6 (Browse shelf) | Available | OP 207/2022/1/2-6 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP 207/2022/1/2-3 Does the bomb-crater effect really exist? | OP 207/2022/1/2-4 How does trust affect concessionary behavior in tax bargaining? | OP 207/2022/1/2-5 Gender discriminatory taxes, fairness perception, and labor supply | OP 207/2022/1/2-6 Redistribution and production with a subsistence income constraint | OP 207/2022/1/2-7 Can tax rate changes accelerate investment under entry and exit flexibility? | OP 207/2022/3 FinanzArchiv | OP 207/2022/3-1 Fining tax evasion |
Resumen.
Bibliografía.
A large body of experimental studies demonstrates that redistribution leads to inefficiencies due to distorted work incentives. Yet, this finding is typically obtained in environments where people are unconstrained in their labor-leisure allocation decisions. In this paper we study labor supply decisions in a framework with a subsistence income constraint and a redistribution system that supports disadvantaged members of a society in meeting the constraint. We document that while high-talent taxpayers perform equally well in all conditions, the less talented ones significantly decrease their performance in response to the introduction of the tax. The negative effect of taxation is mitigated if an income threshold is present and the tax is spent meaningfully.
Click on an image to view it in the image viewer
There are no comments for this item.