Labour Supply, Work Incentives and Behavioural Microsimulation

Research projects in this area examine labour force participation and hours of work of individuals. Much of this research focuses on work incentives, particularly those arising from the interaction between the tax and transfer system. In order to analyse work incentives arising from hypothetical and actual policy changes to the tax and social security system, the Melbourne Institute developed a behavioural microsimulation model. Several projects listed under this heading relate to the further development and use of this model.

In this area of labour supply research, we distinguish between technical papers, which focus on the modelling and the further development of the modelling, and policy papers, which focus on the policy implications arising from the results of the modelling. Some papers fall into both categories.