Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105070
Authors: 
Hayo, Bernd
Uhl, Matthias
Year of Publication: 
2014
Series/Report no.: 
Joint Discussion Paper Series in Economics 38-2014
Abstract: 
We study the influence of taxation on labour supply using a specifically designed representative survey of the German population. First, we investigate whether taxes generally matter for the labour supply decisions of our respondents. Around 41 per cent report taking taxes into consideration, which implies that the majority of the German population appears unresponsive to taxation. Second, we look at self-reported labour supply adjustments following a recently enacted payroll tax change. Only around 12 per cent of all respondents report an actual labour supply response, but we find evidence of an income, as well as a substitution, effect of the tax change. Our conclusion is that effects of taxes on labour supply in Germany are likely small. We analyse the correlation with economic and socio-demographic variables, and find that the self-employed are relatively more sensitive to taxation and that low interest rates reduce incentives for an expansion of the labour supply.
Subjects: 
Taxation
Labour supply
Representative population survey Germany
JEL: 
E62
H30
J22
Document Type: 
Working Paper

Files in This Item:
File
Size
934.66 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.