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Taxation of Spouses: a Cross-Country Study of the Effects on Maaried Women's Labour Supply

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Author Info
Callan, T.
Dex, S.
Smith, N.
Vlasblom, J.D.

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Abstract

The labour force participation rate of married women varies considerably between the European countries. There may be several explanations for this evidence. In this study, the effect of the different income tax schemes on female labour force participation is investigated and compared. A common labour supply function is estimated on cross-section household samples for each of the countries Britain, Denmark, Ireland, and East and West Germany. Based on the estimated labour supply functions, we calculate for each of the countries the hypothetical part time and full time participation rates of married women if the households were taxed by either separate or split taxation principles, as in Britain and Ireland, respectively. The results show that the design of the tax scheme is highly important for the economic incentives that married women face and their resulting labour supply behaviour.

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Publisher Info
Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number 99-02.

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Length: 25 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:clmsre:99-02

Contact details of provider:
Postal: Danmark; Centre for Labour Market and Social Research. Science Park Aarhus Wieds Vej 10C, 8000 Aarhus C, Danmark
Phone: +45 8942 2350
Fax: +45 8942 2365
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Web page: http://www.cls.dk/
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Related research
Keywords: WOMEN ; LABOUR SUPPLY ; MARRIAGE;

Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

Cited by:
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  1. Bargain, Olivier & Orsini, Kristian, 2004. "In-Work Policies in Europe: Killing Two Birds with One Stone?," IZA Discussion Papers 1445, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Nabanita Datta Gupta & Nina Smith & Leslie S. Stratton, 2005. "Is Marriage Poisonous? Are Relationships Taxing? An Analysis of the Male Marital Wage Differential in Denmark," IZA Discussion Papers 1591, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Pedersen, Peder J. & Smith, Nina, 2002. "Unemployment Traps: Do Financial Dis-incentives matter?," CLS Working Papers 01-1, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research. [Downloadable!]
    Other versions:
  4. Nabanita Datta Gupta & Nina Smith & Mette Verner, 2008. "PERSPECTIVE ARTICLE: The impact of Nordic countries’ family friendly policies on employment, wages, and children," Review of Economics of the Household, Springer, vol. 6(1), pages 65-89, March. [Downloadable!] (restricted)
  5. Pylkkänen, Elina & Smith, Nina, 2004. "The Impact of Family-Friendly Policies in Denmark and Sweden on Mothers’ Career Interruptions Due to Childbirth," IZA Discussion Papers 1050, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Nabanita Datta Gupta & Nina Smith & Mette Verner, 2006. "Child Care and Parental Leave in the Nordic Countries: A Model to Aspire to?," IZA Discussion Papers 2014, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-11-20.


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