| 1. |
- Blomqvist, Niklas, 1987-
(författare)
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Essays on Labor Economics : The Role of Government in Labor Supply Choices
- 2020
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- "Right to Work Full-time" Policies and Involuntary Part-time EmploymentThis paper investigates the effect of right to full-time policies implemented to decrease involuntary part-time work for public care workers employed by Swedish municipalities. Taking advantage of a staggered decision process, these policies are evaluated using a difference-in-differences approach. Results show that involuntary part-time employment is real and significant, with 10% of part-time employed workers choosing full-time when given the opportunity. The effect mainly comes from a decrease in contracts of <75% of full-time and an increase in contracts of 80% of full-time and above. Further results from the full-time policies show that being more flexible in the choice of hours worked is popular among workers, indicated by an increase in tenure and reduced turnover in municipalities that offer more flexibility in the choice of hours worked.Hours Constraints and Tax Elasticity Estimates - Evidence from Swedish Public Care WorkersThere is a concern that tax elasticity estimates may be downward biased in the presence of optimization frictions for workers. So far, there is limited evidence on the nature of these optimization frictions. This paper provides new insight into one part of the optimization frictions black box, namely hours constraints. Using unique and newly collected data, I exploit a staggered implementation of a policy that gave some public care workers the opportunity to choose their preferred hours of work. Taking advantage of this policy, I estimate differences in tax elasticities between constrained and unconstrained public care workers by comparing bunching at a large tax kink in the Swedish tax system. The empirical evidence points to the conclusion that hours constraints do not affect tax elasticity estimates.Restricting Residence Permits - Short-Run Evidence from a Swedish ReformIn June 2016, the Swedish parliament decided to restrict the granting of permanent residence permits for asylum seekers in Sweden. The new status quo for a refugee is a temporary rather than a permanent residence permit. In a first evaluation of this reform we use a Regression discontinuity analysis in which we follow refugees, aged 25-65, over their first years after arrival. Our main results show that a temporary residence permit increases the probability of working and enrolling in regular education.Mom and Dad Got Jobs: Natural Resources, Economic Activity, and Infant HealthThe impact of local economic shocks, such as the discovery and exploitation of natural resources, on labor markets and health is not well understood. Both positive and negative effects have been documented in the literature. In this paper, we show that the phase before active resource extraction begins directly affects the local economy. This implies that previous estimates – typically based on designs exploiting differences before and after the active phase of extraction begins - may have understated the actual effect of natural resource extraction on outcomes of interest. Using rich data from Sweden combined with differences in the timing and location of mineral exploitation permits, we find a positive impact on female and male employment and earnings and a negative effect on housing prices. Children’s health outcomes are also negatively affected, an effect likely driven by the increase in local economic activity rather than extraction-related externalities.
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| 2. |
- Aldén, Lina, 1979-, et al.
(författare)
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Ethnic background and the value of self- employment experience : evidence from a randomized field experiment
- 2020
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Med hjälp av ett fältexperiment finner vi att erfarenhet från egenföretagande värderas negativt vid övergång till löneanställning. Jobbsökande med företagarerfarenhet har lägre sannolikhet att bli kallade till anställningsintervju än personer som varit löneanställda. Resultaten gäller oberoende av de sökandes etniska bakgrund och kön. Det är välkänt att människor med bakgrund i länder utanför Europa har problem att etablera sig på den svenska arbetsmarknaden. Inte sällan framförs förhoppningen att arbetslösheten bland vissa grupper av utrikes födda ska minska genom att människor väljer att starta eget företag.Det finns idag en relativt omfattande forskning som visar att andelen egenföretagare är hög i framförallt vissa grupper av utrikes födda från länder utanför Europa, samt att utrikes födda i högre grad än inrikes födda upphör med sina företagarverksamheter. Outforskad frågeställningEn fråga som däremot är relativt outforskad är hur företagarerfarenhet värderas vid övergång till löneanställning, och i vilken utsträckning det i detta avseende finns skillnader mellan inrikes födda personer och personer med utländsk bakgrund.I denna uppsats har vi genomfört ett fältexperiment i vilket mer än 1 300 utannonserade anställningar söktes av fiktiva personer med erfarenhet från att ha varit egenföretagare och/eller löneanställd som programmerare eller redovisningsekonom. Samtliga sökande var 29 år gamla och skilde sig åt beträffande kön och etnisk bakgrund. Sökande hade antingen ett typiskt arabiskt/muslimskt namn eller ett typiskt svenskt namn. Vidare skilde sig de sökande åt genom att de hade erfarenhet från antingen egenföretagande eller löneanställning eller från både och.Företagarerfarenhet värderas lågt oavsett etnisk bakgrundVi finner att sökande med arabisk/muslimska namn väljs bort när de söker jobb, då de erhåller färre svar och får färre inbjudningar till anställningsintervjuer än personer med typiskt svenska namn. Vidare framkommer att erfarenhet från företagande värderas negativt av arbetsgivare. Såväl de sökande som enbart hade erfarenhet från företagande som de sökande som hade erfarenhet från både företagande och löneanställning fick färre svar och färre inbjudningar till intervju än de sökande som enbart hade erfarenhet från löneanställning.Resultaten gäller oberoende av etnisk bakgrund och kön, men vissa skillnader i hur företagarerfarenhet värderas kan observeras mellan framförallt män och kvinnor med utländsk bakgrund. I det senare fallet pekar resultaten mot att företagarerfarenhet värderas högre för kvinnor än för män.Hög policyrelevansResultaten har hög policyrelevans då de visar att personer som i relativt ung ålder väljer att starta företag kan försämra sina möjligheter på arbetsmarknaden senare i livet jämfört med om de varit löneanställda. Vidare är resultaten av betydelse för integrationspolitiken då förhoppningar ofta knyts till att arbetslösheten i vissa grupper av utrikes födda ska minska genom att dessa startar eget företag. I uppsatsen studerar vi inte hur företagarerfarenhet belönas jämfört med att istället ha varit arbetslös, men våra resultat visar att även personer med utländsk bakgrund försämrar sina framtida möjligheter på arbetsmarknaden genom att vara egenföretagare jämfört med att vara löneanställda.
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| 3. |
- Aldén, Lina, 1979-, et al.
(författare)
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Ethnic differences in long-term self-employment
- 2020
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Tidigare forskning har visat att det finns skillnader i ekonomiska utfall mellan utrikes och inrikes födda personer som driver företag, t.ex. lägre inkomster för utrikes födda. Denna uppsats finner att dylika skillnader även existerar mellan utrikes och inrikes födda personer som driver företag under en längre period. Tidigare forskning har belagt att det finns skillnader i sannolikheten att starta och driva eget företag mellan utrikes och inrikes födda personer i Sverige. Det är exempelvis välkänt att egenföretagandet är högt i grupper av utrikes födda som har svårt att få löneanställning. Egenföretagare från sådana grupper har ofta låga företagarinkomster och upphör oftare än andra med sitt företagande. Denna uppsats studerar ekonomiska utfall – arbetsinkomster och kapitalinkomster – bland personer som invandrat till Sverige och som varit egenföretagare i tio år eller längre.Data från register och enkäterVår studie bygger på registerdata från Statistiska centralbyrån och enkätdata. Med data från de offentliga registren studerar vi hur arbetsinkomster och kapitalinkomster förändras över tiden för utrikes och inrikes födda företagare. I enkäten ställer vi frågor till företagarna om deras erfarenheter av att driva eget företag. Det finns skillnader mellan framförallt utrikes födda företagare från länder utanför Europa och inrikes födda företagare för såväl arbets- som kapitalinkomster. Dock minskar skillnaderna i arbetsinkomster mellan olika grupper över tid efter det att företaget startats, medan de etniska skillnaderna i kapitalinkomster tenderar att öka över tid.Enkäten ger oss en inblick i förklaringarna till de resultat som vi observerar. Företagare från länder utanför Europa upplever fler problem i sitt företagande än inrikes födda företagare och företagare från länder i Europa. Problemen avser exempelvis svårigheter att få tillgång till finansiellt kapital samt relationer till kunder och leverantörer. Vi finner också att företagare från länder utanför Europa har ett svagare socialt nätverk än andra företagare.Skillnader på kort sikt kvarstår på längre siktDe problem som framförallt personer från länder utanför Europa möter i sina verksamheter, och som dokumenterats i tidigare forskning om utrikes födda personers företagande, existerar även när vi studerar personer som driver företag under lång tid. En slutsats är därför att det finns skillnader mellan etniska grupper och deras förutsättningar för att driva företag som är bestående även på längre sikt.
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| 4. |
- Bastani, Spencer, Docent, 1982-, et al.
(författare)
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Child care subsidies, quality and optimal income taxation
- 2020
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Ingår i: American Economic Journal. - : American Economic Association. - 1945-7731 .- 1945-774X. ; 12:4, s. 1-37
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Tidskriftsartikel (refereegranskat)abstract
- We study child care subsidies in a Mirrleesian optimal tax framework where parents choose both the quantity and quality of child care. Child care services not only enable parents to work, but also contribute to children’s human capital. We examine the conditions under which child care expenditures should be encouraged or discouraged by the tax system under different assumptions regarding the available policy instruments. Using a quantitative model calibrated to the US economy, we illustrate the possibility that child care expenditures should be taxed rather than subsidized, and discuss the merits of public provision schemes for child care.
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| 5. |
- Bastani, Spencer, Docent, 1982-, et al.
(författare)
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Competition for Promotion Can Induce Household Specialization Between Equally Competitive Spouses
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- We analyze equally competitive spouses competing for promotion in their respective workplaces and show that an asymmetric equilibrium featuring household specialization can arise. Examples where the asymmetric equilibrium is welfare-superior to the symmetric equilibrium are highlighted. By investing heavily in the career of only one spouse, families reduce the intensity of the rat race of the working environment and obtain less risky consumption opportunities. Our findings suggest that specialization can reflect an efficient response to the competitiveness of the labor market and may arise even when all workers have equal opportunities to succeed in the labor market.
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| 6. |
- Bastani, Spencer, 1982-
(författare)
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Essays on the Economics of Income Taxation
- 2012
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- This thesis consists of five self-contained essays.Essay 1. (with Sören Blomquist and Luca Micheletto) Using a calibrated overlapping-generations model we quantify the welfare gains of an age-dependent labor income tax. Agents face uncertainty regarding future abilities and can transfer consumption across periods through savings. The welfare gain of switching from an age-independent to an age-dependent nonlinear tax varies between 2.4% and 4% of GDP. Part of the welfare gain is due to capital accumulation effects and part descends from relaxing incentive-compatibility constraints. The welfare gain is of about the same magnitude as the welfare gain that can be achieved by moving from a linear- to a nonlinear labor income tax. Finally, the welfare loss from tax-exempting interest income is negligible under an optimal age-dependent labor income tax.Essay 2. (with Sören Blomquist and Luca Micheletto)Previous literature has shown that public provision of private goods can be a welfare-enhancing device in second-best settings where governments pursue redistributive goals. However, three issues have so far been neglected. First, the case for supplementing an optimal nonlinear income tax with public provision of private goods has been made in models where agents differ only in terms of market ability. Second, the magnitude of the welfare gains achievable through public provision schemes has not been assessed. Third, the similarities/differences between public provision schemes and tagging schemes have not been thoroughly analyzed. Our purpose in this paper is therefore threefold: first, to extend previous contributions by incorporating in the theoretical analysis both heterogeneity in market ability and in the need for the publicly provided good; second, to perform numerical simulations to quantify the size of the potential welfare gains achievable by introducing a public provision scheme, and to characterize the conditions under which these welfare gains are sizeable; finally, to compare the welfare gains from public provision with the welfare gains from tagging. Essay 3. (with Sören Blomquist and Luca Micheletto)Subsidized child care is a common phenomenon in both Europe and the United States. In this paper we study the efficiency of some of the most common types of child care subsidies. These are a (refundable) tax credit, tax deductibility and public provision. We evaluate the relative efficiency of these instruments using a quantitative simulation model calibrated to resemble the US economy. In our framework there is a special tax treatment for families with children of child care age, which is based on an assumption that agrees with facts pertaining to actual circumstances in the United States, as well as many other countries. We keep the net tax revenue for this group of tax payers constant, hence the subsidies to child care are paid for by the group itself. It is a commonly held view that in a 'good society' all children should have equal opportunities in life. Many proponents of subsidized childcare argue that one way to move in this direction is to allow all children access to good quality child care. We capture this ideological perspective by using a paternalistic social welfare function which places special emphasis on the quality of child care purchased by households. Using a standard social welfare function we find tax deductibility to be the most efficient instrument to subsidize child care and public provision the least efficient instrument. These results are completely reversed when using the paternalistic welfare function and when society has the goal of providing all children with access to good quality child care. Public provision then becomes the best way to subsidize child care. An important aspect of public provision is that it is an efficient instrument in raising the quality of child care. Essay 4. In a recent paper Alesina et al. (2011) construct a model in which different labor supply elasticities for men and women emerge endogenously from intra-household bargaining. In this paper I explore the optimal tax implications of their model in an economy with both singles and couples and inequality across as well as within households. In the model, the welfare of married women can be improved by lowering taxes for single women. However, this benefit must be weighed against the welfare cost of taxing single men and women at different rates. Moreover, if single men earn more than single women, the welfare of married women can alternatively be improved by a gender-neutral tax scheme which taxes singles at a higher rate. Because the government is concerned not only with equalizing utilities within families, but also with the redistribution between high income and low income households, gender-based adjustments in the income tax must be weighed against the welfare consequences of changing the progressivity of the tax system. I find that larger lump-sum transfers to women is always optimal. Interestingly, marginal tax rates, on the other hand, should be lower for women only if the exogenous bargaining power of men is moderate. The welfare gains of gender based taxation are sizable and the welfare gains of having tax instruments which depend on household composition are even larger.Essay 5. (with Håkan Selin) Recent microeconometric studies of taxpayers' responsiveness to taxation have shown that intensive margin labor supply and earnings elasticities typically are modest and sometimes equal to zero. However,a common view is that long-run responses might still be large since micro-estimates are downward biased owing to optimization frictions. In this paper we estimate the taxable income elasticity at a very large kink point of the Swedish tax schedule using the bunching method. During the period of study the change in the log net-of-tax rate reached a maximum value of 45.6%. Interestingly, we obtain a precise elasticity estimate of zero for wage earners at this large kink. The size of the kink allows us to derive tighter bounds on the long-run elasticity than previous studies. If wage earners on average tolerate 1% of their disposable income in optimization costs, the upper bound on the long-run taxable income elasticity is 0.39. We also evaluate the performance of the bunching estimator by performing Monte Carlo simulations.
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| 7. |
- Bastani, Spencer, Docent, 1982-, et al.
(författare)
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Ethnicity and tax filing behavior
- 2019
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- We analyze differences in tax filing behavior between natives and immigrants using population-wide Swedish administrative data, focusing on two empirical examples. First, controlling for a rich set of variables, we compare deduction behavior of immigrants and natives with the same commuting patterns within Sweden's largest commuting zone. We find that newly arrived immigrants file fewer deductions than natives, that immigrants with a longer duration of stay in the host country behave more like natives, and that immigrants with the longest stay file the most, even more than natives. Second, we analyze bunching behavior among the self-employed at the first central government kink point of the Swedish income tax schedule and find that self-employed immigrants exhibit significantly less bunching behavior than natives, even after a long time in the host country. We highlight residential segregation as a main driver of the observed behavioral differences.
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| 8. |
- Bastani, Spencer, Docent, 1982-, et al.
(författare)
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Ethnicity and tax filing behavior
- 2020
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Ingår i: Journal of Urban Economics. - : Elsevier. - 0094-1190 .- 1095-9068. ; 116:March, s. 1-16
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Tidskriftsartikel (refereegranskat)abstract
- We analyze differences in tax filing between natives and immigrants, focusing on two empirical examples. First, we study deductions for costs associated with traveling between home and work allowed in the Swedish tax code. Using the total population of commuters within Sweden's largest commuting zone, we find that newly arrived immigrants file substantially less than natives, immigrants with a longer stay behave more like natives, and immigrants with the longest stay file the most, even more than natives. Second, we analyze bunching behavior among the self-employed at a large salient kink point of the Swedish income tax schedule. We find much less bunching among immigrants, even after a long time in the host country, and the largest differences relative to natives in residential areas with a high immigrant concentration. Our findings have implications for the equity and efficiency of the tax system and the spatial patterns of residential and occupational choices for different ethnic groups.
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| 9. |
- Bastani, Spencer, Docent, 1982-, et al.
(författare)
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Household specialization and competition for promotion
- 2024
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Ingår i: Review of Economics of the Household. - : Springer. - 1569-5239 .- 1573-7152.
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Tidskriftsartikel (refereegranskat)abstract
- We study how the presence of promotion competition in the labor market affects household specialization patterns. By embedding a promotion tournament model in a household setting, we show that specialization can emerge as a consequence of competitive work incentives. This specialization outcome, in which only one spouse invests heavily in his or her career, can be welfare superior to a situation in which both spouses invest equally in their careers. The reason is that household specialization reduces the intensity of competition and provides households with consumption smoothing. The specialization result is obtained in a setting where spouses are equally competitive in the labor market and there is no household production. It is also robust to several modifications of the model, such as varying the number of households, two spouses competing for promotion in the same workplace, and the inclusion of household production.
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| 10. |
- Bastani, Spencer, Docent, 1982-, et al.
(författare)
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How Should Capital Be Taxed?
- 2020
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Ingår i: Journal of Economic Surveys. - : John Wiley & Sons. - 0950-0804 .- 1467-6419. ; 34:4, s. 812-846
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Tidskriftsartikel (refereegranskat)abstract
- This survey discusses how capital should be taxed in advanced economies. We review the theoretical optimal tax literature, survey empirical studies on the distribution of capital and the distortionary costs of capital taxation, and analyze the desirability of specific taxes on capital income, wealth, property, inheritances, and corporate profits. Our overall conclusion is that capital taxation plays an important role in an optimal tax system, but only certain ways of taxing capital are able to strike a balance between optimality and administrative feasibility.
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