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Chapter 12
Income Redistribution
In this chapter we will:
- Learn about the differences among the fiscal regimes of the industrialized countries
- Understand the impact of taxes on employment, unemployment, labor market participation, and hours of work
- Estimate the impact of the Earned Income Tax Credit in the United States, using data and programs that replicate the main results of the paper of Eissa and Leibman (1996) (These data and programs are available at www.labor- economics.org)
- See to what extent differences among taxation regimes can explain differences in hours worked
- Review the various ways of regulating the minimum wage in various countries
- Understand the impact of the minimum wage on employment, unemployment, and labor market participation
- Estimate the impact of minimum wage hikes in the United States, using data and programs that replicate the main results of the paper of Card and Krueger (1994) on the fast-food industry in New Jersey and Pennsylvania (These data and programs are available at www.labor-economics.org)
- Learn what empirical studies show about the impact of the minimum wage on employment and inequality
- Observe to what extent the minimum wage is useful when the government can also use taxes
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