Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296908 
Year of Publication: 
2022
Series/Report no.: 
Memorandum No. 04/2022
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
In this report, we combine theory and empirical estimates for how labor earnings respond to changes in tax rates and unearned income. We use lottery winnings to obtain variation in unearned income and tax reforms to obtain variation in the net of tax rate. Combining this information with measures of extensive margin responses and the progressivity of the Norwegian income tax schedule, we are able to point identify uncompensated and compensated behavioral responses to income taxes and therefore to calculate efficiency losses and optimal income tax rates (for given welfare weights).
Subjects: 
income effect
labor supply elasticities
lottery winnings
efficiency loss
optimal income taxation
JEL: 
D15
J22
H21
H31
H53
Document Type: 
Working Paper

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