Labor Supply Responses and Adjustment Frictions: A Tax-Free Year in Iceland
利用冰岛1987年劳动收入免税这一自然实验，估计了临时工资变化对劳动力供给的集约边际和扩展边际弹性，发现调整摩擦是解释弹性差异的关键。
Labor income earned in Iceland in 1987 went untaxed. I use this episode to study labor supply responses to temporary wage changes. Using a population-wide dataset of earnings and working time and two identification strategies, I estimate intensive and extensive margin Frisch elasticities of 0.4 and 0.09, respectively. Workers with the ability to adjust drive these average responses: extensive margin by young and close-to-retirement cohorts and intensive margin responses by workers in temporally flexible jobs, though secondary jobs contribute to one-tenth of the response. The results suggest that adjustment frictions may similarly explain differences in elasticities within and across countries.