Does Italy need family income taxation?
AbstractThe possible implications of using the family as opposed to the individual as the unit of taxation are not clear. This applies both to work incentives and distributional outcomes. In this paper we evaluate the effects of a hypothetical reform for Italian income taxation with respect to labour supply. In particular, we analyze potential labour supply effects by considering a shift from the current system of individual taxation to a system of family taxation similar to the French family splitting approach. The analysis is based on an econometric model of labour supply that is embedded in a tax–benefit model. Using data from the Bank of Italy Survey of Household Income and Wealth, our simulation results show relatively small effects on the total labour supply but a decrease in female labour supply.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 77.
Length: 41 pages
Date of creation: 2007
Date of revision:
tax benefit system; fiscal reform; labour supply; microsimulation;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-08 (All new papers)
- NEP-CMP-2007-12-08 (Computational Economics)
- NEP-EEC-2007-12-08 (European Economics)
- NEP-PBE-2007-12-08 (Public Economics)
- NEP-PUB-2007-12-08 (Public Finance)
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- Fabrizio Colonna & Stefania Marcassa, 2013.
"Taxation and Labor Force Participation: The Case of Italy,"
- Fabrizio Colonna & Stefania Marcassa, 2013. "Taxation and labor force participation: the case of Italy," Questioni di Economia e Finanza (Occasional Papers) 191, Bank of Italy, Economic Research and International Relations Area.
- Colonna, Fabrizio & Marcassa, Stefania, 2012. "Taxation and Labor Force Participation: The Case of Italy," CEPREMAP Working Papers (Docweb), CEPREMAP 1203, CEPREMAP.
- Stefania Marcassa & Fabrizio Colonna, 2011. "Taxation and Labor Force Participation: The Case of Italy," THEMA Working Papers 2011-22, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
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