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The Swedish EITC and its effect on the employment rate

Wikander, Markus LU (2014) NEKP01 20141
Department of Economics
Abstract
The thesis evaluates the Swedish EITC and its effect on the employment rate. The Swedish EITC was introduced in 2007 to encourage more people to enter the labor market. This will be evaluated with a difference-in-difference method. The fact that the tax rate in the municipality is an important part of the formula for the EITC will be used to form groups depending of the size of the tax rate. A municipality with a higher tax rate would experience a higher increase in the employment rate than those with a lower tax rate.
It will be shown that there is a difference between groups with different tax rates. However, when controlling for long-term time trend, this effect is eliminated. This shows the difficulties of examining the Swedish EITC.
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author
Wikander, Markus LU
supervisor
organization
course
NEKP01 20141
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Income effect, Substitution effect, Employment, EITC
language
English
id
4618267
date added to LUP
2014-09-22 12:58:30
date last changed
2014-09-22 12:58:30
@misc{4618267,
  abstract     = {{The thesis evaluates the Swedish EITC and its effect on the employment rate. The Swedish EITC was introduced in 2007 to encourage more people to enter the labor market. This will be evaluated with a difference-in-difference method. The fact that the tax rate in the municipality is an important part of the formula for the EITC will be used to form groups depending of the size of the tax rate. A municipality with a higher tax rate would experience a higher increase in the employment rate than those with a lower tax rate. 
It will be shown that there is a difference between groups with different tax rates. However, when controlling for long-term time trend, this effect is eliminated. This shows the difficulties of examining the Swedish EITC.}},
  author       = {{Wikander, Markus}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Swedish EITC and its effect on the employment rate}},
  year         = {{2014}},
}