Table 2 Labor supply elasticities of husbands and wives with respect to gross hourly wages by decile of disposable household income

From: In-work benefits for married couples: an ex-ante evaluation of EITC and WTC policies in Italy

					Own elasticity			Cross elasticity
Model	Outcome	Spouse	Decile	Baseline	Mean	Q ₅	Q ₉₅	Mean	Q ₅	Q ₉₅
1	PP	Husband	I-III	84.26	0.45	0.33	0.60	0.01	-0.06	0.08
			IV-VII	96.76	0.06	0.01	0.11	-0.03	-0.07	0.01
			VIII-X	98.44	0.01	0.00	0.04	-0.04	-0.09	0.00
			Total	93.51	0.15	0.11	0.19	-0.02	-0.05	0.01
		Wife	I-III	12.28	3.95	2.68	5.21	0.14	-0.56	0.99
			IV-VII	60.31	0.49	0.34	0.65	-0.08	-0.22	0.04
			VIII-X	84.58	0.14	0.06	0.20	-0.14	-0.25	-0.04
			Total	53.17	0.56	0.43	0.68	-0.09	-0.22	0.02
	HW	Husband	I-III	32.40	0.52	0.38	0.69	0.03	-0.07	0.12
			IV-VII	38.36	0.09	0.04	0.14	-0.04	-0.08	0.01
			VIII-X	39.58	0.01	-0.03	0.05	-0.06	-0.14	-0.02
			Total	36.94	0.18	0.13	0.23	-0.03	-0.07	0.00
		Wife	I-III	3.50	4.83	3.36	6.25	0.18	-0.59	1.11
			IV-VII	19.48	0.59	0.42	0.77	-0.11	-0.24	0.03
			VIII-X	28.47	0.17	0.07	0.26	-0.17	-0.31	-0.06
			Total	17.38	0.64	0.50	0.77	-0.12	-0.26	-0.00
2	PP	Husband	I-III	84.26	0.38	0.25	0.51	0.01	-0.06	0.08
			IV-VII	96.76	0.06	0.03	0.11	-0.03	-0.08	0.00
			VIII-X	98.44	0.02	0.00	0.04	-0.04	-0.09	0.00
			Total	93.51	0.13	0.09	0.18	-0.02	-0.05	0.01
		Wife	I-III	12.28	3.94	2.82	5.07	0.53	-0.14	1.27
			IV-VII	60.31	0.51	0.34	0.69	-0.02	-0.13	0.09
			VIII-X	84.58	0.16	0.08	0.25	-0.05	-0.14	0.02
			Total	53.17	0.58	0.47	0.69	0.00	-0.10	0.10
	HW	Husband	I-III	32.40	0.46	0.33	0.61	0.03	-0.05	0.12
			IV-VII	38.36	0.10	0.04	0.15	-0.04	-0.09	0.01
			VIII-X	39.58	0.04	0.01	0.09	-0.06	-0.12	-0.01
			Total	36.94	0.18	0.13	0.23	-0.03	-0.06	0.01
		Wife	I-III	3.50	4.88	3.48	6.47	0.65	-0.20	1.46
			IV-VII	19.48	0.63	0.46	0.84	-0.03	-0.15	0.08
			VIII-X	28.47	0.24	0.14	0.35	-0.07	-0.17	0.01
			Total	17.38	0.70	0.58	0.83	-0.01	-0.11	0.10

Notes: Elasticities are computed, increasing the gross hourly wages of all jobs by 10%. PP and HW denote the participation probability (in percentage points) and the unconditional hours of work per week, respectively. Q₅and Q₉₅denote the fifth and ninety-fifth percentiles, respectively, so that (Q₅,Q₉₅) is a two sided confidence interval of 90 percent.

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