Abstract
Not available in German. In the face of complex budget constraints the assumption of rationally acting individuals having complete knowledge of the tax system is a theoretical borderline. The specific issues examined in this study are: (i) what extent do consumers (here married women) perceive their true marginal tax rate when they make their labor supply decisions?, and (ii) how does the perception of the marginal tax rate differ among various socio-economic groups ?. Using different approaches and different data sets we consistently find that: (i) against conventional wisdom the assumption of complete knowledge of the tax system does not fit the data well, and that (ii) education apears to be the main determinant of a correct perception of the marginal tax rate
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
