2019년 근로장려세제 확대 개편의 노동공급효과 분석

초록

In 2018, the Korean government announced the 2018 tax reform that included a significant expansion of the number of recipients and the level of benefits of the EITC, and executed this reform in 2019. Using 12∼14th NaSTaB panel data, this paper empirically investigated the impact of this EITC tax reform on labor supply. Our results show that the reform had a significant effect on labor supply for those who are in the flat or phase-out intervals and have relatively high income. These labor supply effects are prominent in married couple and in particular self-employed and second earners who are relatively more flexible for labor supply among married couples. It is not consistent with theoretical predictions that the labor supply effects of the EITC would occur in flat or phase-out intervals. Our empirical results provide supporting evidence that the unusual labor supply effect of the EITC expansion is due to the unique feature of Korea EITC system which calculate the EITC paymernt based on earning type, single earner and dual income earner.

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