Optimal tax rules are used to evaluate the optimality of taxation for lone mothers in Germany and Britain. The theoretical model is combined with elasticities derived from the structural estimation of lone mothers’ labour supply. For both countries we do not find that in-work credits with marginal tax rates are optimal. However we show that when the government has a low taste for redistribution, out ...
In:
Economic Journal
119 (2009), 535, F101-F121
| Richard Blundell, Mike Brewer, Peter Haan, Andrew Shephard