New study reveals significant impact of unobserved heterogeneity on labour supply.
The article explores how hidden differences among people affect their decisions about working. Researchers developed a new method to better understand these differences and found that when all factors are considered, people's willingness to work can change a lot. They also looked at how a new tax credit in Italy could impact how much people work and their income. The results show that the tax credit could lead to significant changes in both work behavior and income distribution.