?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=Employment%2C+hours+of+work+and+the+optimal+taxation+of+low+income+families&rft.creator=Shephard%2C+A.&rft.creator=Blundell%2C+R.&rft.description=This+paper+examines+the+tax+schedule+for+low+income+families+with+children.+We+take+an+optimal+tax+approach+based+on+a+structural+labour+supply+model+which+incorporates+unobserved+heterogeneity%2C+fixed+costs+of+work%2C+childcare+costs+and+the+detailed+non-convexities+of+the+tax+and+transfer+system.+The+motivation+is+the+British+earned+income+tax+credit+reform+(WFTC)+and+its+interaction+with+the+tax+and+transfer+system+for+lone+parents.+Our+analysis+also+examines+the+case+for+the+use+of+hours-contingent+payments.+The+results+point+to+a+tax+schedule+which+depends+on+the+age+of+children%2C+with+tax+credits+only+optimal+for+low+earners+with+school+age+children.+The+results+also+suggest+a+welfare+improving+role+for+hours-contingent+payments+although+this+is+mitigated+when+hours+cannot+be+monitored+or+recorded+accurately+by+the+tax+authorities.&rft.publisher=Institute+for+Fiscal+Studies&rft.date=2008-01&rft.type=Working+%2F+discussion+paper&rft.language=eng&rft.source=++++(IFS+Working+Papers++WP08%2F0).+Institute+for+Fiscal+Studies%3A+London%2C+UK.+(2008)+++++&rft.format=application%2Fpdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F18743%2F1%2F18743.pdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F18743%2F&rft.rights=open