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A Split Decision: Welche Auswirkungen hätte die Abschaffung des Ehegattensplittings auf das Arbeitsangebot und die Einkommensverteilung?

Author

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  • Bachmann Ronald

    (RWI – Leibniz-Institut für Wirtschaftsforschung e.V.45030EssenDeutschland)

  • Jäger Philipp

    (RWI – Leibniz-Institut für Wirtschaftsforschung e.V.45030EssenDeutschland)

  • Jessen Robin

    (RWI – Leibniz-Institut für Wirtschaftsforschung e.V.45030EssenDeutschland)

Abstract

In this paper, we use a microsimulation model to examine the labor supply implications of switching from joint taxation (“Ehegattensplitting”) to individual taxation. We show that the switch to individual taxation would increase labor supply by more than half a million full-time equivalents. However, such a reform also leads to financial losses for some groups of the population, which should be taken into account by economic policy makers.

Suggested Citation

  • Bachmann Ronald & Jäger Philipp & Jessen Robin, 2021. "A Split Decision: Welche Auswirkungen hätte die Abschaffung des Ehegattensplittings auf das Arbeitsangebot und die Einkommensverteilung?," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 70(2), pages 105-131, August.
    • Handle: RePEc:lus:zwipol:v:70:y:2021:i:2:p:105-131:n:3
    DOI: 10.1515/zfwp-2021-2052
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    6. Hans Fehr & Manuel Kallweit & Fabian Kindermann, 2015. "Reforming Family Taxation in Germany - Labor Supply versus Insurance Effects," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 71(1), pages 53-81, March.
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    8. Beznoska, Martin, 2019. "Do Couples Pool Their Income?," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203490, Verein für Socialpolitik / German Economic Association.
    9. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
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    Cited by:

    1. Holger Bonin & Ulf Rinne, 2022. "Die Zeitenwende erreicht den deutschen Arbeitsmarkt [Germany’s Labour Market at a Turning Point]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(9), pages 665-668, September.
    2. Steffen J. Roth, 2022. "Das Ehegattensplitting steht der Erwerbstätigkeit von Frauen nicht im Weg [The Taxation of Couples in Germany Does Not Prevent Women from Working]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(12), pages 965-970, December.

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    More about this item

    Keywords

    Ehegattensplitting; Arbeitsangebot; Einkommensverteilung;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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