Labor Supply Responses to Learning the Tax and Benefit Schedule
利用挪威福利系统的断点设计和信息获取的准实验变化,量化了信息摩擦与其他摩擦在削弱劳动供给弹性中的相对重要性,发现信息摩擦至少占总体衰减的30%。
Despite the implications for policy, empirical evidence on the relative importance of factors that shape labor supply responses is missing. This paper helps fill this gap and quantifies the role of information frictions versus other frictions by combining notches in the Norwegian welfare system and quasi-experimental variation in access to information about the slope and location of kinks. While we estimate a frictionless elasticity of 0.3, overall frictions attenuate this elasticity by about 70 percent. We find the information letter increased the earnings elasticity from 0.06 to 0.15, implying that information frictions account for at least 30 percent of total attenuation.