| 1 | A | B | C | D | E | F | G | H | I |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2 | encompassing tests-labour income and employment responses to changes in the marginal versus average net-of-tax shares |  |  |  |  |  |  |  |  |
| 3 |  | initial timing of response, net-of-tax shares |  |  |  | delayed timing of response, net-of-tax shares |  |  |  |
| 4 |  | marginal | average | marginal and average | marginal and average | marginal | average | marginal and average | marginal and average |
| 5 |  | coefficient estimates |  |  |  |  |  |  |  |
| 6 | panel a: intensive margin |  |  |  |  |  |  |  |  |
| 7 | marginal net-of-tax share | 1.004 | .. | 0.573 | -0.112 | -0.276 | .. | -0.178 | -0.122 |
| 8 | average net-of-tax share | .. | 1.838 | 1.293 | 0.421 | .. | -0.457 | -0.288 | -0.208 |
| 9 | total after-tax income | .. | .. | .. | 0.028 | .. | .. | .. | -0.134 |
| 10 | panel b: extensive margin |  |  |  |  |  |  |  |  |
| 11 | marginal net-of-tax share | 0.202 | .. | 0.145 | 0.011 | -0.033 | .. | -0.018 | -0.019 |
| 12 | average net-of-tax share | .. | 0.148 | 0.104 | -0.005 | .. | -0.033 | -0.028 | -0.028 |
| 13 | total after-tax income | .. | .. | .. | -0.015 | .. | .. | .. | -0.006 |

Question: for each 1% increase in the average net-of-tax share, what is estimated increase of labour income in the preferred model specification?
Answer: 0.421