Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154673
Authors: 
Annabi, Nabil
Boudribila, Youssef
Harvey, Simon
Year of Publication: 
2013
Citation: 
[Journal:] IZA Journal of Labor Policy [ISSN:] 2193-9004 [Volume:] 2 [Year:] 2013 [Pages:] 1-33
Abstract: 
In this study we assess the impact of the Working Income Tax Benefit (WITB) on labour supply, GDP and income distribution in Canada, using a general equilibrium microsimulation model. We also estimate labour supply and demand elasticities using survey data to ensure that households' behaviour is properly captured in the model. Simulation results show that the WITB affects particularly labour market participation of low- and medium-skilled lone-parents families. These positive effects on labour supply translate into higher after-tax incomes leading to a decline in low-income rates and low-income gaps. Our findings suggest that enhancing the WITB could provide additional income support to working Canadian families while reducing work disincentives for those trapped behind the welfare wall.
Subjects: 
general equilibrium
microsimulation
elasticities
labour supply
income distribution
Canada
JEL: 
C15
D33
D58
J08
I32
O51
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/2.0/
Document Type: 
Article

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