University of Illinois Urbana-Champaign

Income Taxation, Hours of Work, and Non-Monetary Job Characteristics

Wegner, Robert Curtis

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Description

Title
Income Taxation, Hours of Work, and Non-Monetary Job Characteristics
Author(s)
Wegner, Robert Curtis
Issue Date
1980
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Finance
Language
eng
Abstract
  • This thesis analyzes the effect of the personal income tax on the choice of labor supply and non-monetary job characteristics. Previous studies of income taxation and labor supply have implicitly assumed that the wage rate measures the opportunity cost of an hour of work. This is not necessarily true if jobs differ in their non-monetary characteristics. The theoretical analysis develops a competitive economic model that uses the concept of a compensating wage differential to measure the variations, between jobs with different characteristics, of the opportunity cost for an hour of work. In the analysis, it is shown that if the firm has less than a perfectly elastic demand for an individual's time, then the theoretical conclusions of the compensating wage differential literature no longer hold necessarily.
  • The model is estimated using data from the 1972 Quality of Employment Survey. The results indicate that both the wage and the compensating wage differential for job characteristics have a positive effect on labor supply. This is interpreted as indicating that income taxation will tend to reduce labor supply. However, this effect is partially off-set when individuals choose better non-monetary job characteristics when taxed more heavily.
Graduation Semester
1980
Type of Resource
text
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http://hdl.handle.net/2142/67677

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