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Tax Structure and Female Labour Market Participation: Evidence from Ireland Author info | Abstract | Publisher info | Download info | Related research | Statistics Tim Callan () (ESRI and IZA)
Arthur van Soest () (Tilburg University, RAND and IZA)
John R. Walsh () (ESRI)
Additional information is available for the following
registered author(s):
How great an effect does the structure of income taxes have on women’s labour market participation? This issue is investigated using a discrete choice static labour supply model for married couples in Ireland. The model incorporates fixed costs of working and simultaneously explains participation decisions and preferred hours of work. Details of the tax system are fully incorporated, and key elements of the welfare system are also taken into account. The model is estimated using data from the 1994 wave of the Living in Ireland Survey. The results are used to analyse the labour supply effects of a move to greater independence in the tax treatment of couples. The influence of tax structure on participation is reconsidered in the light of trends in women’s participation in the labour market and two key changes in the structure of taxation: a shift from a joint or aggregated basis of assessment to an "incomesplitting" system in 1980 and a further substantial shift from income-splitting towards greater independence from 2000 onwards.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
3090.
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Length: 33 pages
Date of creation: Oct 2007Date of revision:
Handle: RePEc:iza:izadps:dp3090Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany Phone: +49 228 3894 223 Fax: +49 228 3894 180 Web page: http://www.iza.org
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Keywords: labour supply discrete choice micro-simulation Other versions of this item:
Find related papers by JEL classification: 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
This paper has been announced in the following NEP Reports :
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