Number 9: Means-tested benefits, incentives and earnings distributions

This paper considers the question of whether, in the absence of data on hours worked by individuals, it is possible to identify labour supply incentive effects of a tax and transfer system using information on only the distribution of earnings

Considers the question of whether it is possible, using information about only the distribution of earnings, to identify some of the labour supply incentive effects of a tax and transfer system. This is the first in a number of papers to emerge from initial and exploratory analysis of the department's Longitudinal (administrative) Data Set (LDS).

Content Updated: 24 April 2014