The Effects of the 1.03 million yen Ceiling in a Dynamic Labor Supply Model
Abstract
In this paper I examine the e ects of a means-tested transfer system in Japan (“1.03 million yen ceiling”) in a dynamic labor supply model with endogenous retirement. In Japan, married women have reason to limit their annual earnings to no more than 1.03 million yen in order to receive a number of benefits available to low-income wives, and in fact often choose to do so. In a dynamic model, the optimal labor supply schedule follows a pattern that is not seen in a static framework, which I call the “spillover e ect.” The paper also examines the properties of dynamic welfare cost of this ceiling.
Journal
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- Contemporary Economic Policy
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Contemporary Economic Policy 27 (2), 147-163, 2009-04
Wiley-Blackwell
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Details
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- CRID
- 1050845763948271872
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- NII Article ID
- 120005595710
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- ISSN
- 14657287
- 10743529
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- HANDLE
- 2115/58492
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- Text Lang
- en
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- Article Type
- journal article
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- Data Source
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- IRDB
- CiNii Articles
- KAKEN