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The Rise in Female Employment and the Role of Tax Incentives. An Empirical Analysis of the Swedish Individual Tax Reform of 1971

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  • Selin, Håkan

    ()
    (Department of Economics)

Abstract

Sweden reached the 2007 OECD average level of female labor force participation already in 1974. Before, but not after, 1971 the average tax rate facing the housewife was a function of the income of her husband. By exploiting a rich register based data source I utilize the exogenous variation provided by the individual tax reform to analyze the evolution of female employment in Sweden in the beginning of the 1970’s. Simulations suggest that employment among married women would have been 10 percentage points lower in 1975 if the 1969 statutory income tax system still had been in place in 1975.

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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2009:4.

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Length: 38 pages
Date of creation: 08 Apr 2009
Date of revision:
Handle: RePEc:hhs:uunewp:2009_004

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Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Keywords: Female labor supply; income tax reforms;

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  2. Gustafsson, Siv & Jacobsson, Roger, 1985. "Trends in Female Labor Force Participation in Sweden," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S256-74, January.
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Citations

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Cited by:
  1. Angelov, Nikolay & Johansson, Per & Lindahl, Erica, 2013. "Is the persistent gender gap in income and wages due to unequal family responsibilities?," Working Paper Series 2013:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Angelov, Nikolay & Johansson, Per & Lindahl, Erica, 2013. "Gender Differences in Sickness Absence and the Gender Division of Family Responsibilities," IZA Discussion Papers 7379, Institute for the Study of Labor (IZA).
  3. Forslund, Anders & Fredriksson, Peter, 2009. "Income support systems, labour supply incentives and employment – some cross-country evidence," Working Paper Series 2009:32, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Stefan Hochguertel & Henry Ohlsson, 2012. "Who is at the Top? Wealth Mobility over the Life Cycle," Tinbergen Institute Discussion Papers 12-004/3, Tinbergen Institute.
  5. Klara Kaliskova, 2013. "Family Taxation and the Female Labor Supply: Evidence from the Czech Republic," CERGE-EI Working Papers wp496, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  6. Stefan Hochguertel & Henry Ohlsson, 2011. "Wealth mobility and dynamics over entire individual working life cycles," BCL working papers 56, Central Bank of Luxembourg.
  7. Avdic, Daniel & Johansson, Per, 2013. "Gender Differences in Preferences for Health-Related Absences from Work," IZA Discussion Papers 7480, Institute for the Study of Labor (IZA).
  8. Forslund, Anders, 2009. "Labour supply incentives, income support systems and taxes in Sweden," Working Paper Series 2009:30, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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