Labor Supply Responses to Learning the Tax and Benefit Schedule

Despite the implications for policy, empirical evidence on relative importance of factors that shape labor supply responses is missing. This paper helps fill this gap and quantifies role information frictions versus other by combining notches in Norwegian welfare system quasi-experimental variation access to about slope location kinks. While we estimate a frictionless elasticity 0.3, overall attenuate 70 percent. We find letter increased earnings from 0.06 0.15, implying account at least 30 percent total attenuation. (JEL D83, H24, I38, J22, J28, J31)