Does Income Taxation Affect Partners’ Household Chores?
AbstractWe study the impact of income taxation on both partners‟ allocation of time to market work and unpaid house work in households with two adults. We estimate a structural household utility model in which the marginal utilities of leisure and house work of both partners are modelled as random coefficients, depending on observed and unobserved characteristics of the household and the two partners. We use a discrete choice model with choice sets of 2,401 points for each couple, distinguishing seven market work intervals and seven house work intervals for each partner. The model is estimated using data for France, which taxes incomes of married couples jointly, like, for instance, Germany and the US. We find that both partners‟ market and non-market time allocation decisions are responsive to changes in the tax system or other policy changes that change the financial incentives. Women‟s time allocation is more responsive to the own and the partner‟s wage rate than men‟s. Tax policy simulations suggest that moving from joint taxation for married couples to separate taxation of each spouse would go a small step in the direction of equalizing market and non-market work of spouses. Selective taxation with smaller tax rates for women than for men would magnify these effects.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2010-76.
Date of creation: 2010
Date of revision:
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Web page: http://center.uvt.nl
time use; taxation; labour supply; discrete choice models;
Other versions of this item:
- van Soest, Arthur & Stancanelli, Elena G. F., 2010. "Does Income Taxation Affect Partners' Household Chores?," IZA Discussion Papers 5038, Institute for the Study of Labor (IZA).
- Arthur Van Soest & Elena Stancanelli, 2010. "Does income taxation affect partners’ household chores?," Documents de Travail de l'OFCE 2010-12, Observatoire Francais des Conjonctures Economiques (OFCE).
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-21 (All new papers)
- NEP-DCM-2010-08-21 (Discrete Choice Models)
- NEP-PUB-2010-08-21 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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urn:nbn:nl:ui:12-119390, Tilburg University.
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677, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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- Stancanelli, Elena G. F., 2012. "Spouses' Retirement and Hours Outcomes: Evidence from Twofold Regression Discontinuity with Differences-in-Differences," IZA Discussion Papers 6791, Institute for the Study of Labor (IZA).
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- Elena Stancanelli, 2012.
"Spouses' Retirement and Hours of Work Outcomes : Evidence from Twofold Regression Discontinuity,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Elena Stancanelli, 2012. "Spouses' Retirement and Hours of Work Outcomes: Evidence from Twofold Regression Discontinuity," Documents de travail du Centre d'Economie de la Sorbonne 12074, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Knoef, Marike & Kooreman, Peter, 2011. "The Effects of Cooperation: A Structural Model of Siblings' Caregiving Interactions," IZA Discussion Papers 5733, Institute for the Study of Labor (IZA).
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