Labor income responds differently to income-tax and payroll-tax reforms

摘要: We estimate the responses of gross labor income with respect to marginal and average net-of-tax rates in France over period 2003–2006. exploit a series reforms income-tax payroll-tax schedules affecting individuals who earn less than twice minimum wage. Our for elasticity net-of-income-tax rate is around 0.2, while we find no response net-of-payroll-tax rate. The not significant schedule, it close − 1 schedule. A plausible explanation existence supply combined sticky posted wages (i.e., minus payroll taxes divided by hours worked). Finally, effect seems be driven participation decisions, particular those married women.