Even before the financial crisis of 2008–2009 many developed economies were struggling to maintain employment and earnings. These problems become even more severe as populations age. The key to extending employment and earnings is to focus policy on improving the flows into work for people leaving school and for mothers with young children, and on expanding work among people in their 50s and 60s. These are the margins where labor supply is most sensitive to tax incentives, and a policy redesign can enhance earnings throughout the working life.
Authors
CPP Co-Director
Richard is Co-Director of the Centre for the Microeconomic Analysis of Public Policy (CPP) and Senior Research Fellow at IFS.
Report details
- Publisher
- IZA
Suggested citation
Blundell, R. (2014). How responsive is the labor market to tax policy?. Bonn: IZA. Available at: https://ifs.org.uk/publications/how-responsive-labor-market-tax-policy (accessed: 26 June 2024).
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