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Table 9 Income elasticities of demand and Frisch parameters by household category

From: Labour supply and income distribution effects of the working income tax benefit: a general equilibrium microsimulation analysis

 

Less than $15,000

$15,000 to $35,000

$35,000 to $55,000

$55,000 to $100,000

$100,000 to 150,000

 

OP

CO

CC

LP

OT

OP

CO

CC

LP

OT

OP

CO

CC

LP

OT

OP

CO

CC

LP

OT

OP

CO

CC

LP

OT

Number of observations

1053

128

20

136

542

2169

1537

1026

1015

1365

777

2094

2686

507

1467

265

1476

3336

254

958

13

226

639

12

193

Agriculture and forestry

0.11

0.19

-

0.09

0.14

4.86

3.24

2.54

0.17

3.73

6.34

3.45

3.70

4.25

4.83

10.14

4.64

3.40

3.76

5.70

-

3.45

8.76

-

8.89

 

(0.00)

(0.03)

-

(0.02)

(0.01)

(0.01)

(0.01)

(0.01)

(0.01)

(0.01)

(0.03)

(0.01)

(0.01)

(0.01)

(0.01)

(0.07)

(0.01)

(0.01)

(0.04)

(0.04)

-

(0.01)

(0.05)

-

(0.07)

Other mining

4.96

2.00

-

6.67

9.76

5.20

6.11

3.65

7.29

4.41

15.45

5.58

9.25

12.51

5.54

12.20

7.31

6.11

7.30

13.10

-

5.58

14.50

-

14.30

 

(0.03)

(0.24)

-

(0.58)

(0.39)

(0.05)

(0.02)

(0.02)

(0.19)

(0.07)

(0.33)

(0.03)

(0.04)

(0.10)

(0.02)

(0.35)

(0.06)

(0.02)

(0.11)

(0.15)

-

(0.03)

(0.16)

-

(0.11)

Food, drink and tobacco

0.10

0.20

-

0.00

0.00

0.79

0.59

0.60

0.17

0.65

1.17

0.85

0.88

0.93

1.16

1.22

1.18

0.92

1.03

1.16

-

0.85

1.97

-

1.75

 

(0.00)

(0.03)

-

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.01)

(0.00)

(0.01)

(0.00)

(0.00)

(0.00)

(0.00)

(0.01)

(0.00)

(0.00)

(0.01)

(0.01)

-

(0.00)

(0.01)

-

(0.01)

Textiles and clothing

6.62

0.30

-

3.95

4.80

5.94

2.06

3.16

0.15

6.90

1.81

2.07

1.77

0.51

1.67

2.33

2.03

2.00

1.91

1.95

-

2.07

1.03

-

1.29

 

(0.02)

(0.04)

-

(0.44)

(0.31)

(0.05)

(0.01)

(0.01)

(0.01)

(0.06)

(0.03)

(0.01)

(0.01)

(0.00)

(0.01)

(0.06)

(0.02)

(0.01)

(0.03)

(0.02)

-

(0.01)

(0.01)

-

(0.02)

Lumber and wood

10.54

17.48

-

0.07

0.11

2.50

20.23

3.05

0.11

4.45

14.43

7.31

4.38

13.02

11.93

9.89

7.14

9.03

8.95

5.59

-

7.31

4.39

-

10.09

 

(0.26)

(1.12)

-

(0.01)

(0.01)

(0.05)

(0.58)

(0.06)

(0.00)

(0.12)

(0.63)

(0.18)

(0.09)

(0.37)

(0.35)

(1.01)

(0.24)

(0.15)

(0.66)

(0.18)

-

(0.18)

(0.22)

-

(0.57)

Refined and other petroleum products

7.30

0.00

-

7.12

4.62

2.40

0.58

1.79

6.23

2.24

1.22

2.08

2.34

2.30

0.96

2.33

2.96

2.61

2.98

2.71

-

2.08

1.62

-

1.66

 

(0.14)

(0.00)

-

(0.32)

(0.24)

(0.03)

(0.00)

(0.01)

(0.10)

(0.04)

(0.02)

(0.01)

(0.01)

(0.02)

(0.00)

(0.07)

(0.02)

(0.01)

(0.07)

(0.03)

-

(0.01)

(0.01)

-

(0.02)

Machinery, motor vehicles and parts

34.75

20.91

-

33.82

1.07

4.86

5.49

6.44

16.23

5.95

2.10

1.31

4.13

1.73

2.19

0.89

0.56

0.81

0.73

1.30

-

1.31

1.12

-

1.26

 

(5.91)

(1.19)

-

(12.09)

(0.05)

(0.35)

(0.41)

(0.54)

(1.29)

(0.57)

(0.13)

(0.06)

(0.16)

(0.14)

(0.11)

(0.05)

(0.02)

(0.02)

(0.05)

(0.04)

-

(0.06)

(0.04)

-

(0.08)

Other manufactures

0.30

0.18

-

0.10

0.13

1.24

1.16

1.18

0.16

1.25

1.19

1.61

0.77

1.54

0.71

0.96

1.95

1.69

1.71

0.80

-

1.61

1.43

-

1.24

 

(0.00)

(0.02)

-

(0.02)

(0.01)

(0.01)

(0.00)

(0.00)

(0.01)

(0.01)

(0.01)

(0.01)

(0.00)

(0.00)

(0.00)

(0.01)

(0.01)

(0.00)

(0.02)

(0.01)

-

(0.01)

(0.01)

-

(0.02)

Utilities

1.23

2.57

-

2.43

3.94

1.41

0.58

0.99

2.01

1.16

3.98

3.40

2.74

1.85

3.10

4.84

4.45

3.76

4.44

3.88

-

3.40

3.29

-

3.08

 

(0.01)

(0.24)

-

(0.20)

(0.14)

(0.01)

(0.00)

(0.01)

(0.05)

(0.02)

(0.08)

(0.02)

(0.01)

(0.01)

(0.02)

(0.14)

(0.04)

(0.02)

(0.07)

(0.04)

-

(0.06)

(0.05)

-

(0.24)

Transportation and storage

2.93

12.72

-

8.19

6.18

2.38

2.86

3.36

6.57

2.66

1.35

2.21

2.84

2.74

1.53

5.16

2.14

2.66

2.38

2.87

-

2.21

1.69

-

2.30

 

(0.04)

(0.53)

-

(0.50)

(0.17)

(0.07)

(0.13)

(0.18)

(0.03)

(0.09)

(0.05)

(0.06)

(0.09)

(0.14)

(0.03)

(0.42)

(0.06)

(0.05)

(0.19)

(0.12)

-

(0.10)

(0.06)

-

(0.22)

Social services

10.03

8.76

-

10.10

7.68

3.04

3.31

3.42

7.48

2.50

3.16

4.24

3.24

1.68

2.56

4.21

6.47

3.47

2.34

3.13

-

4.24

2.15

-

4.00

 

(0.61)

(0.34)

-

(1.82)

(0.47)

(0.11)

(0.13)

(0.16)

(0.11)

(0.11)

(0.17)

(0.10)

(0.09)

(0.07)

(0.08)

(0.30)

(0.21)

(0.06)

(0.17)

(0.18)

-

(0.00)

(0.00)

-

(0.00)

Wholesaling and retailing margins

0.11

0.16

-

0.17

0.15

0.56

0.45

0.38

0.15

0.53

0.44

0.44

0.50

0.54

0.51

0.67

0.43

0.43

0.44

0.48

-

0.44

0.39

-

0.41

 

(0.00)

(0.03)

-

(0.03)

(0.01)

(0.00)

(0.00)

(0.00)

(0.01)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

-

(0.00)

(0.00)

-

(0.00)

Other services

0.11

0.21

-

0.17

0.17

0.07

0.08

0.09

0.16

0.08

0.07

0.09

0.08

0.09

0.09

0.08

0.08

0.09

0.09

0.08

-

0.09

0.09

-

0.08

 

(0.00)

(0.03)

-

(0.03)

(0.01)

(0.00)

(0.00)

(0.00)

(0.01)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

(0.00)

-

(0.00)

(0.00)

-

(0.00)

Frisch parameter

1.02

−1.05

-

−1.03

−1.06

−1.08

−1.10

−1.09

−1.07

−1.09

−1.07

−1.09

−1.07

−1.21

−1.11

−1.22

−1.08

−1.13

−1.16

−1.11

-

−1.09

−1.22

-

−1.29

 

(0.00)

(0.01)

-

(0.01)

(0.01)

(0.32)

(0.56)

(0.01)

(0.03)

(0.24)

(0.23)

(0.02)

(0.05)

(0.47)

(0.05)

(0.00)

(0.01)

(0.01)

(0.16)

(0.80)

-

(0.12)

(0.79)

-

(0.16)

  1. Source: Estimation results.
  2. Notes: Standard errors are between brackets. OP, CO, CC, LP, and OT refer respectively to One person, Couples, Couples with children, Lone parents households, and Others.
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