June 26, 2019

Non-Bunching at Kinks and Notches in Cash Transfers

We study the behavioural responses to kinks and notches in the Dutch system of cash transfers, using data on the universe of Dutch households for the period 2007-2014. We typically do not find statistically significant evidence of bunching around kinks or notches, neither in income nor in wealth.
Main image

This finding is robust across different household types and modes of employment. We consider potential mechanisms that can explain this apparent lack of bunching.

Contacts

Nicole Bosch Read more
Foto Egbert Jongen
Egbert Jongen +31 6 50746439 Read more
Wouter Leenders Read more
Foto Jan Möhlmann
Jan Möhlmann +31 6 50632710 Read more