1. This paper introduces an approach to jointly identify the intensive and extensive labor supply equations from tax schedule changes.
2. This method uses policy-driven changes in the after-tax incentives to work as a selection instrument for the decision to work, which provides a method for obtaining consistent estimates of the intensive margin equation.
3. The paper focuses on older individuals in the United States and studies the effects of income tax changes on their labor supply behavior, exploiting exogenous variation in federal income tax rates originating from two major legislative tax schedule changes that occurred during this time period.
The article “Estimating Intensive and Extensive Tax Responsiveness” by Alpert (2020) is a well-researched and comprehensive study of how households respond to income taxes on both the intensive and extensive margins. The article provides an innovative approach to jointly identify these equations from tax schedule changes, using policy-driven changes in after-tax incentives to work as a selection instrument for the decision to work. The article also focuses on older individuals in the United States and studies the effects of income tax changes on their labor supply behavior, exploiting exogenous variation in federal income tax rates originating from two major legislative tax schedule changes that occurred during this time period.
The article is reliable and trustworthy due to its thorough research methodology, use of credible sources, clear explanations of concepts, and detailed analysis of data. The author has provided evidence for all claims made throughout the article, including references to relevant literature in both the labor supply and taxation fields. Furthermore, potential biases are noted throughout the article, such as selection issues when estimating either equation independently or imputing earnings for nonworkers.
The only potential issue with this article is that it does not present counterarguments or explore alternative perspectives on its findings. While this is understandable given its focus on one particular topic, it would have been beneficial if other points of view had been considered or discussed more thoroughly. Additionally, there could have been more discussion about possible risks associated with implementing such policies or strategies based on these findings.
In conclusion, this article is reliable and trustworthy due to its thorough research methodology and use of credible sources throughout its analysis. It provides an innovative approach to jointly identify intensive and extensive labor supply equations from tax schedule changes while focusing on older individuals in the United States as its primary demographic group for study purposes. However, it could benefit from further exploration into alternative perspectives or possible risks associated with