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학술대회자료

New Estimates for Labor Supply Elasticity of Korean Married Female Workers: Evidence from Recent Korean Tax Reform

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This paper estimated the labor elasticities of Korean married female workers. In order to minimize the endogeneity issue in hourly wage rate in labor supply equation, we took advantage of the recent tax reforms in which marginal tax rates and income deduction amounts had changed. Our estimates show that the compensated elasticity of female workers with stable job is close to zero while the compensated elasticity of female workers with less stable job is around 0.5.

1.Introduction

2.Recent tax reforms in Korea

3.Empirical specification and identification strategy

4.Data

5.Empirical analysis

6.Conclusions

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