IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00279012.html
   My bibliography  Save this paper

Family Tax Splitting : A Microsimulation of Its Potential Labour Supply and Intra-household Welfare Effects in Germany

Author

Listed:
  • Miriam Beblo

    (Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - Universität Mannheim)

  • Denis Beninger

    (Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - Universität Mannheim)

  • Francois Laisney

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - Universität Mannheim)

Abstract

This paper assesses the effects that an introduction of the French family splitting mechanism would have on German families' labour supply and intra-household consumption behaviour. We use simulated real world microdata created by means of a 'deterministic' collective labour supply model. The data are generated by a compound procedure of estimation and calibration based on GSOEP data. In a microsimulation the present tax-benefit system with child benefit/allowance is replaced by a tax scheme with family splitting. The resulting changes in labour supply are surprisingly small, even for women. Welfare effects are also modest, but differ for husbands and wives.

Suggested Citation

  • Miriam Beblo & Denis Beninger & Francois Laisney, 2022. "Family Tax Splitting : A Microsimulation of Its Potential Labour Supply and Intra-household Welfare Effects in Germany," Working Papers hal-00279012, HAL.
    • Handle: RePEc:hal:wpaper:hal-00279012
    DOI: 10.2139/ssrn.423403
    Note: View the original document on HAL open archive server: https://hal.science/hal-00279012
    as

    Download full text from publisher

    File URL: https://hal.science/hal-00279012/document
    Download Restriction: no
    File URL: https://libkey.io/10.2139/ssrn.423403?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Donni, Olivier, 2003. "Collective household labor supply: nonparticipation and income taxation," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1179-1198, May.
    2. Henri Sterdyniak, 1992. "Pour défendre le quotient familial," Économie et Statistique, Programme National Persée, vol. 256(1), pages 5-24.
    3. repec:adr:anecst:y:1988:i:11:p:06 is not listed on IDEAS
    4. Laisney, François & Beninger, Denis, 2002. "Comparison between unitary and collective models of household labor supply with taxation," ZEW Discussion Papers 02-65, ZEW - Leibniz Centre for European Economic Research.
    5. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    6. Anthony B. Atkinson & François Bourguignon & Pierre-André Chiappori, 1988. "Fiscalité et transferts: une comparaison franco-britannique," Annals of Economics and Statistics, GENES, issue 11, pages 117-140.
    7. Apps, Patricia F. & Rees, Ray, 1988. "Taxation and the household," Journal of Public Economics, Elsevier, vol. 35(3), pages 355-369, April.
    8. Laisney, François & Beninger, Denis & Beblo, Miriam, 2003. "Welfare Analysis of Fiscal Reforms: Does the Representation of the Family Decision Process Matter? Evidence for Germany," ZEW Discussion Papers 03-31, ZEW - Leibniz Centre for European Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eva Schlenker, 2009. "Frauen als Stille Reserve im Ingenieurwesen," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 315/2009, Department of Economics, University of Hohenheim, Germany.
    2. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    3. Kristian Orsini & Amadéo Spadaro, 2006. "Strategic weight within couples: a microsimulation approach," Working Papers halshs-00590395, HAL.
    4. Denis Beninger & Holger Bonin & Julia Horstschräer & Grit Mühler, 2010. "Wirkungen eines Betreuungsgeldes bei bedarfsgerechtem Ausbau frühkindlicher Kindertagesbetreuung: eine Mikrosimulationsstudie," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 79(3), pages 147-168.
    5. Kristian Orsini & Amadéo Spadaro, 2005. "Sharing resources within the household: a multi-country microsimulation analysis of the determinants of intrahousehold "strategic weight" differentials and their distributional outcomes," Working Papers halshs-00590860, HAL.
    6. Alexandre Baclet & Fabien Dell & Katharina Wrohlich, 2005. "Income Taxation and Household Size: Would French Family Splitting Make German Families Better Off ?," Discussion Papers of DIW Berlin 542, DIW Berlin, German Institute for Economic Research.
    7. Callan, Tim & van Soest, Arthur & Walsh, John R., 2007. "Tax Structure and Female Labour Market Participation: Evidence from Ireland," IZA Discussion Papers 3090, Institute of Labor Economics (IZA).
    8. Bergs Christian & Schaefer Thilo & Fuest Clemens & Peichl Andreas, 2007. "Reformoptionen der Familienbesteuerung: Aufkommens-, Verteilungs- und Arbeitsangebotseffekte," Review of Economics, De Gruyter, vol. 58(1), pages 1-27, April.
    9. Fabien Dell & Katharina Wrohlich, 2006. "Income Taxation and its Family Components in France," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(4), pages 50-54, 02.
    10. Fabien Dell & Katharina Wrohlich, 2006. "Income Taxation and its Family Components in France," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(04), pages 50-54, February.
    11. Djurdjevic, Dragana, 2005. "Women's Labour Supply after Childbirth: An Empirical Analysis for Switzerland," Darmstadt Discussion Papers in Economics 144, Darmstadt University of Technology, Department of Law and Economics.
    12. Peter Haan, 2004. "Discrete Choice Labor Supply: Conditional Logit vs. Random Coefficient Models," Discussion Papers of DIW Berlin 394, DIW Berlin, German Institute for Economic Research.
    13. S. Verzillo & A. Santoro & M. Mezzanzanica, 2017. "Family splitting versus joint taxation: a case-study," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(2), pages 337-354, August.
    14. Amedeo Spadaro & Kristian Orsini, 2006. "Strategic Weight Within Couples: A Microsimulation Approach," Working Papers 2006-27, FEDEA.
    15. Volker Meier & Matthias Wrede, 2013. "Reducing the excess burden of subsidizing the stork: joint taxation, individual taxation, and family tax splitting," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1195-1207, July.
    16. Hans Fehr & Manuel Kallweit & Fabian Kindermann, 2013. "Reforming Family Taxation in Germany - Labor Supply vs. Insurance Effects," CESifo Working Paper Series 4386, CESifo.
    17. Viktor Steiner & Katharina Wrohlich, 2006. "Die Wirkung ausgewählter familienpolitischer Instrumente auf das Arbeitsangebot von Eltern: Expertise für den Familienbericht der Bundesregierung," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 16, number pbk16, January.
    18. Bautista Lacambra, Sergio, 2020. "Household labor supply: Collective results for certain developed countries," MPRA Paper 101514, University Library of Munich, Germany.
    19. Kristian Orsini & Amadéo Spadaro, 2005. "Sharing resources within the household: a multi-country microsimulation analysis of the determinants of intrahousehold "strategic weight" differentials and their distributional outcomes," PSE Working Papers halshs-00590860, HAL.
    20. Steiner, Viktor & Wrohlich, Katharina, 2006. "Introducing Family Tax Splitting in Germany: How Would It Affect the Income Distribution and Work Incentives?," IZA Discussion Papers 2245, Institute of Labor Economics (IZA).
    21. Clauss, Markus & Schnabel, Reinhold, 2008. "Distributional and behavioural effects of the German labour market reform," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(4), pages 431-446.
    22. Viktor Steiner & Katharina Wrohlich, 2008. "Introducing Family Tax Splitting in Germany: How Would It Affect the Income Distribution, Work Incentives, and Household Welfare?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(1), pages 115-142, March.
    23. Beninger, Denis & Bonin, Holger & Clauss, Markus & Horstschräer, Julia & Mühler, Grit, 2009. "Fiskalische Auswirkungen sowie arbeitsmarkt- und verteilungspolitische Effekte einer Einführung eines Betreuungsgeldes für Kinder unter 3 Jahren: Studie im Auftrag des Bundesministeriums der Finanzen.," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110517, September.
    24. Peter Haan, "undated". "Conditional logit versus random coefficient models: An analysis using GLLAMM," German Stata Users' Group Meetings 2004 7, Stata Users Group.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & Javier Ruiz-Castillo , 2006. "Does the Representation of Household Behavior Matter for Welfare Analysis of Tax-benefit Policies? An Introduction," Review of Economics of the Household, Springer, vol. 4(2), pages 99-111, June.
    2. Bloemen, Hans, 2010. "Income Taxation in an Empirical Collective Household Labour Supply Model with Discrete Hours," IZA Discussion Papers 4697, Institute of Labor Economics (IZA).
    3. Frederic Vermeulen & Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & , 2006. "Collective Models of Labor Supply with Nonconvex Budget Sets and Nonparticipation: A Calibration Approach," Review of Economics of the Household, Springer, vol. 4(2), pages 113-127, June.
    4. Denis Beninger & François Laisney, 2006. "On the performance of unitary models of household labor supply estimated on “collective” data with taxation," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 81, pages 5-36.
    5. Bargain, Olivier & Moreau, Nicolas, 2006. "Effets d’une réforme fiscale sur l’offre de travail des ménages dans un cadre collectif simulé," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 207-246, mars-juin.
    6. Hans G. Bloemen, 2019. "Collective Labor Supply, Taxes, and Intrahousehold Allocation: An Empirical Approach," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(3), pages 471-483, July.
    7. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    8. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2012. "Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information," American Economic Review, American Economic Association, vol. 102(7), pages 3377-3405, December.
    9. Jaime Andrés Sarmiento Espinel, 2012. "Parental investment in their children’s education," Serie documentos de trabajo del Centro de Estudios Económicos 2012-09, El Colegio de México, Centro de Estudios Económicos.
    10. Olivier Bargain, 2017. "Welfare analysis and redistributive policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(4), pages 393-419, December.
    11. Eleonora Matteazzi & Martina Menon & Federico Perali, 2017. "The Collective Farm-household Model: Policy and Welfare Simulations," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 111-153.
    12. Olivier Bargain & Nicolas Moreau, 2002. "Is the collective model of labor supply useful for tax policy analysis ? A simulation exercise," DELTA Working Papers 2002-21, DELTA (Ecole normale supérieure).
    13. Sam Allgood, 2009. "The Collective Household, Household Production and Efficiency of Marginal Reforms," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(5), pages 749-771, October.
    14. Miriam Beblo & Denis Beninger, 2012. "Do husbands and wives pool their incomes? Experimental evidence," Working Papers of BETA 2012-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    15. Olivier Bargain, 2008. "Normative evaluation of tax policies: from households to individuals," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(2), pages 339-371, April.
    16. Frederic Vermeulen, 2001. "And the winner is...: an Empirical Evaluation of Two Competing Approaches to Household Labour Supply," Working Papers of Department of Economics, Leuven 500566, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    17. Donni, Olivier, 2008. "Labor supply, home production, and welfare comparisons," Journal of Public Economics, Elsevier, vol. 92(7), pages 1720-1737, July.
    18. Eleftherios Giovanis & Oznur Ozdamar, 2018. "Empirical Application of Collective Household Labour Supply Model in Iraq," Working Papers 1180, Economic Research Forum, revised 19 Apr 2018.
    19. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute of Labor Economics (IZA).
    20. Laisney, François & Beninger, Denis & Beblo, Miriam, 2003. "Welfare Analysis of Fiscal Reforms: Does the Representation of the Family Decision Process Matter? Evidence for Germany," ZEW Discussion Papers 03-31, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    Collective model; Household labour supply; Intra-household allocation; Tax reform; Family splitting;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-00279012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.