The Experts below are selected from a list of 312 Experts worldwide ranked by ideXlab platform
Gareth Hardy - One of the best experts on this subject based on the ideXlab platform.
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understanding the tax implications of the youth Wage Subsidy employees tax 15 minutes
TAXtalk, 2016Co-Authors: Gareth HardyAbstract:The Youth Wage Subsidy,which came into being through the Employment Incentive Act No 26 of 2013 (ETIA), allows employers to claim a deduction on the amount of PAYE they have to pay over to SARS based on the number and salary of qualifying employees, provided that certain conditions are met. Since its inception in January 2014, the Employment Tax Incentive (ETI) has been both fiercely criticised and praised. It will no doubt again draw the political spotlight before it either comes to an end in December 2016 or is extended.
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Understanding the Tax implications of the youth Wage Subsidy : employees tax / 15 minutes
2016Co-Authors: Gareth HardyAbstract:The Youth Wage Subsidy,which came into being through the Employment Incentive Act No 26 of 2013 (ETIA), allows employers to claim a deduction on the amount of PAYE they have to pay over to SARS based on the number and salary of qualifying employees, provided that certain conditions are met. Since its inception in January 2014, the Employment Tax Incentive (ETI) has been both fiercely criticised and praised. It will no doubt again draw the political spotlight before it either comes to an end in December 2016 or is extended.
Guy Lacroix - One of the best experts on this subject based on the ideXlab platform.
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assessing the impact of a Wage Subsidy for single parents on social assistance
Canadian Journal of Economics, 2011Co-Authors: Guy LacroixAbstract:This paper studies the impact of a Wage Subsidy program aimed at long-term social assistance recipients in Quebec. The program closely mimics the Self-Sufficiency Project and was implemented for a trial period of one year in 2002.We focus on the labour market transitions of the targeted population starting one year before the implementation of the program and until the end of 2005. Our results show that the duration of spells off social assistance increased, while the duration of social assistance spells decreased slightly. The response to the program varies considerably with both observed and unobserved characteristics.
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assessing the impact of a Wage Subsidy for single parents on social assistance evaluation d une subvention salariale pour les chefs de familles monoparentales beneficiant d aide sociale
2011Co-Authors: Guy Lacroix, Dany BrouilletteAbstract:This paper studies the impact of a Wage Subsidy program aimed at long‐term social assistance recipients in Quebec. The program closely mimics the Self‐Sufficiency Project and was implemented for a trial period of one year in 2002.We focus on the labour market transitions of the targeted population starting one year before the implementation of the program and until the end of 2005. Our results show that the duration of spells off social assistance increased, while the duration of social assistance spells decreased slightly. The response to the program varies considerably with both observed and unobserved characteristics. (Ce texte etudie l’impact d’un programme de subvention salariale visant les beneficiaires d’aide sociale de longue duree au Quebec. Le programme ressemble grandement au Projet de l’autosuffisance et a ete mis en place pour une periode d’essai d’un an en 2002. On se concentre sur les transitions sur le marche du travail de la population cible pour la periode qui va d’un an avant la mise en place du programme jusqu’a la fin de 2005. Les resultats montrent que la duree des periodes hors de l’aide sociale a augmente et que la duree de periodes ou l’aide sociale est collectee a diminue legerement. La reponse au programme varie grandement selon les caracteristiques observables et non‐observables.)
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heterogeneous treatment and self selection in a Wage Subsidy experiment
Journal of Public Economics, 2010Co-Authors: Dany Brouillette, Guy LacroixAbstract:The Self-Sufficiency Project (SSP) is a research and demonstration project that offered a generous time-limited income supplement to randomly selected welfare applicants under two conditions. The first, the eligibility condition, required that they remain on welfare for at least twelve months. The second, the qualification condition, required that they find a full-time job within twelve months after establishing eligibility. In this paper we focus on a neglected and important feature of the program, namely that the financial reward for becoming qualified is inversely related to the expected Wage rate. Under very simple assumptions we show that those who have a low expected Wage rate have a clear incentive to establish eligibility. Empirical non-parametric evidence strongly suggests that individuals self-select into eligibility. We jointly estimate a participation equation and a Wage equation that are correlated through individual random effects. Our results show that the omission of self-selectivity into qualification translates into slightly overestimated treatment effects.
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assessing the impact of a Wage Subsidy for single parents on social assistance in canada
Cahiers de recherche, 2009Co-Authors: Guy LacroixAbstract:In 2002 the Quebec government implemented the "Action Emploi" (AE) program aimed at making work pay for long-term social assistance recipients (SA). AE offered a generous Wage Subsidy that could last up to three years to recipients who found a full-time job within twelve months. The program was implemented on an experimental basis for a single year. Based on little empirical evidence, a slightly modified version of the program was implemented on permanent basis in May 2008. The paper investigates the impact of the temporary program by focusing on the labour market transitions of the targeted population starting one year before the implementation of the program and up until the end of 2005. We use a multi-state multi-episode model. The endogeneity of the participation status is accounted for by treating AE as a distinct state and by allowing correlated unobserved factors to affect the transitions. The model is estimated by the method of simulated moments. Our results show that AE has indeed increased the duration of Off-SA spells and decreased the duration of SA spells slightly. There is also some evidence that the response to the program varies considerably with unobserved individual characteristics.
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assessing the external validity of an experimental Wage Subsidy
Annals of economics and statistics, 2008Co-Authors: Thierry Kamionka, Guy LacroixAbstract:In Canada, a policy aiming at helping single parents on social assistance become self-reliant was implemented on an experimental basis. The Self-Sufficiency Entry Effects Demonstration randomly selected a sample of 4,134 single parents who had applied for welfare between January 1994 and March 1995. It turned out only 3,315 took part in the experiment despite a 50% chance of receiving a generous, time-limited, earnings supplement conditional on finding a full-time job and leaving income assistance within a year. The purpose of this paper is to determine whether a non-response rate of 20% is likely to harm the external validity of the experiment. We compare the estimated impact of the program using experimental data only to that obtained using additional data on individuals not taking part in the experiment. We find strong evidence of non-response bias in the data. When we correct for the bias, we find that estimates that rely on experimental data only significantly underestimate the true impact of the program.
Daniel Shaviro - One of the best experts on this subject based on the ideXlab platform.
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the minimum Wage the earned income tax credit and optimal Subsidy policy
University of Chicago Law Review, 1997Co-Authors: Daniel ShaviroAbstract:The minimum Wage is equivalent to a non-means-tested low-Wage Subsidy, financed by a tax on low-Wage employers. This paper, building on insights from both labor economics and tax-transfer policy, assesses the main reasons for adopting such a Subsidy, and shows that the tax financing method largely defeats the presumed goals. The assessment includes a review of Card and Krueger's recent work on the minimum Wage, which is shown to be empirically weak and theoretically implausible despite various complexities in labor markets. Consideration of a more appropriate low-Wage Subsidy requires looking comprehensively at U.S. tax-transfer policy. Due to phaseouts of various social welfare benefits, the United States has long imposed confiscatory marginal rates on many poor households, sometimes exceeding 100 percent. Phaseouts are generally a flawed way to target benefits, since they result in anomalously high "bubble" rates during the phaseout range. A better approach would seek a plausible overall rate structure (defined in Mirrleasean optimal tax terms) based on at least conceptual tax-transfer integration, as in the "negative income tax" that was widely discussed in the United States in the 1960s and 1970s. Such a system would likely involve a "demogrant" that was gradually phased out and then converted into a positive net tax liability as income increased. Marginal tax rates on people's Wages would be low or even negative (under certain assumptions about positive externalities from increased workforce participation by the poor) at low income levels, and they likely would not bounce repeatedly up and down.
Michael Lechner - One of the best experts on this subject based on the ideXlab platform.
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Do Long-term Unemployed Workers Benefit from Targeted Wage Subsidies?
German Economic Review, 2015Co-Authors: Benjamin Schünemann, Michael Lechner, Conny WunschAbstract:We evaluate a Wage Subsidy program that is targeted at long-term unemployed workers in Germany. We use an alternative identification procedure compared to empirical studies conducted so far. Exploiting the particular program regulations and large administrative data we estimate the impact of program availability using a regression discontinuity framework. Our results suggest no significant impact of the availability of the Subsidy on labor market outcomes of the target group. Even though our analysis lacks some statistical power, our findings do not support the substantial positive effects obtained from matching studies. As our approach does not require observability of all drivers of selection, previous empirical studies justifying government expenditures on Wage subsidies based on matching methods should be reconsidered.
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a microeconometric evaluation of the active labour market policy in switzerland
The Economic Journal, 2002Co-Authors: Michael Gerfin, Michael LechnerAbstract:In the late 1990s, Switzerland introduced an ambitious active labour market policy (ALMP) encompassing several programmes. We evaluate their effects on the individual employment probability using unusually informative data from administrative records. Using a matching estimator for multiple programmes, we find positive effects for one particular programme unique to the Swiss ALMP. It consists of a Wage Subsidy for temporary jobs in the regular labour market that would otherwise not be taken up by the unemployed. We also find negative effects for traditional employment programmes operated in sheltered labour markets. For training courses, the results are mixed.
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a microeconometric evaluation of active labour market policy in switzerland
2001Co-Authors: Michael Gerfin, Michael LechnerAbstract:In the second half of the 1990s Switzerland introduced an ambitious active labour market policy (ALMP) encompassing a variety of programmes. We evaluate the effects of these programmes on individual employment probability using unusually informative data originating from administrative records. Using a matching estimator for multiple programmes, we find positive effects for one particular programme that is a unique feature of the Swiss ALMP. It consists of a Wage Subsidy for temporary jobs in the regular labour market that would otherwise not be taken up by the unemployed. We also find negative effects for traditional employment programmes operated in sheltered labour markets. For training courses the results are mixed.
Johan Moritz Kuhn - One of the best experts on this subject based on the ideXlab platform.
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worker level and firm level effects of a Wage Subsidy program for highly educated labor evidence from denmark
Research Policy, 2016Co-Authors: Ulrich Kaiser, Johan Moritz KuhnAbstract:We study the effects of a Danish Wage Subsidy program for highly educated workers on the labor market outcomes of the persons participating in the program and on the performance of the firms that hired these subsidized workers. Using data on the population of program participants, both individuals and firms, we find that the program had positive effects on employment and Wages the year individuals participate in the program. For Wages, we also find positive and statistically significant effects for the two subsequent years. At the program participating firm level, we find statistically significant effects on the number of highly educated employees for both the period of program participation and the subsequent time period.
