blog post

Although much of the analysis that CBO undertakes is very technical in nature, the agency works hard to explain the basis for its findings so that Members of Congress, their staff, and outside analysts can understand the results and question the methods used.

To that end, CBO just released a report, How the Supply of Labor Responds to Changes in Fiscal Policy, that explains an important aspect of the agency’s analysis.

working paper

working paper

report

In choosing how much to work, people respond to incentives that are partly determined by taxes on income from that work and by government benefits that vary with income. Those responses play a critical role in CBO’s analysis of the effects of changes in fiscal policy on economic outcomes.