Will you civil union me? Taxation and civil unions in France
AbstractAlthough the tax system is not marriage neutral in many countries, it has been found to be only slightly significant in determining marriage decisions (Buffeteau and Echevin, 2003; Alm and Whittington, 1995). This paper tests whether the tax system can alter the decision to contract a civil union, which is less binding than a marital contract. In 1999, France introduced civil union (pacs) as an alternative legal union to marriage. I assess the impact of taxation on the decision to contract a pacs using a difference-in-differences evaluation of the 2005 income tax reform for newly pacsed couples. As the control group is contaminated by the reform, I propose an original estimation method based on a difference-in-differences-in-differences setting to estimate bounds to the impact of the reform. My results find a positive and increasing impact of taxation on pacs rates, but also a change in the timing of pacs unions suggesting that taxation alters the decision to contract a pacs. In addition, I find a slightly significant impact of taxation on the decision to terminate a pacs.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 96 (2012)
Issue (Month): 5 ()
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Web page: http://www.elsevier.com/locate/inca/505578
Civil union; Taxation; Marriage; Pacs; Difference in difference;
Other versions of this item:
- Marion Leturcq, 2011. "Would you civil union me?," PSE Working Papers halshs-00628642, HAL.
- Marion Leturcq, 2009. "Would you civil union me? Civil unions and taxes in France: Did the reform of income taxation raise the rate of civil unions?," PSE Working Papers halshs-00566846, HAL.
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law
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