An Evaluation of the French Tax Reduction for In-Home Services
AbstractThis paper aims at evaluating the effect of the 1991 French tax reduction on the use of in-home services. The motivation of this study is to determine whether the redistribution it generates in favour of the wealthiest is counterbalanced by an incentive to use more services for less well-off households and then, by low-skilled job creations. We implement a method which combines matching and difference-in-difference estimators. Our results suggest that the tax reduction had a significant effect (between 1.3 and 4.9 points) on the propensity to consume of the 40 % households whose standard of living is intermediate.
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Bibliographic InfoPaper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2011-02.
Date of creation: 2011
Date of revision:
in-home services; tax cut; matching; difference-in-difference matching; public policy evaluation;
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-30 (All new papers)
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