par Orsini, Kristian 
Référence Brussels economic review, 50, 2, page (193-220)
Publication Publié, 2007
Référence Brussels economic review, 50, 2, page (193-220)
Publication Publié, 2007
Article révisé par les pairs
| Résumé : | In the period 2001-2004 two major reforms followed in Belgium: a personal income tax reform which included a new tax credit on low earnings (2001) and a reform of social security contributions for low wage employees (2004). Using a discrete hours labor supply model, this paper assesses the impact of these reforms on aggregate labor supply of couples. Results suggest that the reforms had a positive (but moderate) effect on both participation and hours worked. Targeted reductions in social security contributions, nevertheless, proved to be more effective in stimulating aggregate labour supply, whereas the tax credit had a stronger effect on participation. |
