Working papers:
Substitution and Income Effects of Labor Income Taxation
Joint with Michael Graber, Magne Mogstad, Gaute Torsvik, and Ola Vestad - Draft
Identification and Estimation of Labor Supply Elasticities from Kinked Budget Sets
Joint with Deniz Dutz, Magne Mogstad, and Alexander Torgovitsky - Draft
Equity and Efficiency When Needs Differ (Accepted by Journal of Public Economics)
Joint with Kristoffer Berg and Paolo Piacquadio - Draft
Why and How Income Effects Matter for Optimal Labor Income Taxation
Joint with Kristen Vamsæter - Draft
Meritocratic Labor Income Taxation
Joint with Kristoffer Berg and Magnus Stubhaug - Draft
Selected work in progress:
Intensive and extensive margin labor supply responses: evidence from a large-scale earned income tax credit experiment in Norway
Joint with Simon Bensnes, Øystein Hernæs, Simen Markussen, Magne Mogstad, Oddbjørn Raaum, Ragnhild C. Schreiner, and Gaute Torsvik - Report
I am part of a research group that has designed an experimental study of a job tax credit targeted at young individuals. The experiment will take the form of a large-scale randomized controlled trial in which 100,000 randomly selected individuals aged 20 to 35 are offered an increased basic tax deduction for earned income, but not for income from welfare benefits. The tax credit reduces tax liabilities by up to NOK 27,500, substantially increasing the return to employment. Because the credit is phased out at higher income levels, individuals with a loose attachment to the labor market receive the most substantial increases in participation incentives. However, the gradual phase-out generates variation in both marginal, average, and participation tax rates across a broad range of the income distribution. This will enable us to study substitution and income effects on both the intensive and extensive margins. We will also examine how the tax credit affects a wide set of different outcomes, including educational choices, geographic mobility, family formation and dissolution, entry into entrepreneurship, and job-to-job mobility. The experiment will be implemented in 2026, and we expect to begin analyzing the data as soon as it becomes available, likely by the end of that year.
Efficiency and taxation when productivity is unequal to pay
with Magne Mogstad, Gaute Torsvik, and Kristen Vamsæter.