Active Welfare State Policies and Labour Supply in Spain

Xisco Oliver ^[1] ; Amedeo Spadaro ^[1]
1. [1] Universitat de les Illes Balears
  
  Universitat de les Illes Balears
  
  Palma de Mallorca, España
Localización: Hacienda Pública Española / Review of Public Economics, ISSN 0210-1173, Nº 222, 2017, págs. 9-41
Idioma: inglés
Enlaces
- Texto completo (pdf)

Resumen
- This paper shows the effect of tax reforms aimed at encouraging Spanish mothers to join the labour market (or not to abandon it). The simulated reforms replace the current in-work benefit (of €100 a month) with more generous scenarios. The analysis is conducted using a behavioural microsimulation model of the Spanish tax-benefit system. The results show that in-work benefits boost the female labour participation rate and labour supply of low-income households (those with higher elasticities). Indeed there is an improvement in social welfare, but we should not overlook the impact on tax revenue.