Volume 25, Number 3 (Summer) 1990
Triest, Robert K. 1990. "The Effect of Income Taxation on Labor Supply in the United States." Journal of Human Resources 25(3):491-516.
The effect of income taxation on the labor supply of prime age married men and women in the United States is examined using econometric methods similar to those used in the influential work of Jerry Hausman. Male labor supply is found to be relatively invariant to the net wage and virtual income in all specifications estimated. The estimated impact of taxation on the labor supply of married women depends critically on the method used to estimate the labor supply function. Estimated net wage and virtual income elasticities are considerably larger when data on nonparticipants are included than when the estimation is conducted conditional on hours being greater than zero.
The author is an assistant professor in the Department of Economics, University of California-Davis. He is grateful to Jerry Hausman, other conference participants, and two anonymous referees for very helpful comments.
© 2002 by the Board of Regents of the University of Wisconsin System
US ISSN 0022-166X