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100 _aKostøl, Andreas R. and Myhre, Andreas S.
_933268
245 _aLabor supply responses to learning the tax and benefit schedule
260 _aAmerican Economic Review
300 _a111(11), Nov, 2021: p.3733-3766
520 _aDespite the implications for policy, empirical evidence on the relative importance of factors that shape labor supply responses is missing. This paper helps fill this gap and quantifies the role of information frictions versus other frictions by combining notches in the Norwegian welfare system and quasi-experimental variation in access to information about the slope and location of kinks. While we estimate a frictionless elasticity of 0.3, overall frictions attenuate this elasticity by about 70 percent. We find the information letter increased the earnings elasticity from 0.06 to 0.15, implying that information frictions account for at least 30 percent of total attenuation. – Reproduced
773 _aAmerican Economic Review
906 _aLABOUR SUPPLY
942 _cAR