The Swedish EITC and its effect on the employment rate
(2014) NEKP01 20141Department 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.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4618267
- author
- Wikander, Markus LU
- supervisor
- organization
- course
- NEKP01 20141
- year
- 2014
- 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}}, }