Does joint taxation disadvantage women? To answer that question, this paper begins by reviewing unitary and bargaining models of intrafamily allocation, and then discusses the determinants of "bargaining power" in a world without taxes. It argues that wage rates rather than earnings are determinants of bargaining power, and then argues that productivity in household production is also a source of bargaining power. In the absence of human capital effects, joint taxation does not appear to disadvantage women in either divorce threat or separate spheres bargaining. Hence, the claim that joint taxation disadvantages women, if it is correct, depends on effects that operate through the incentives to accumulate human capital. But a satisfactory analysis of the effects of taxation on human capital awaits the further development of dynamic models of family bargaining.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
3109.
Find related papers by JEL classification: H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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Hector Chade & Gustavo Ventura, 2002.
"Taxes and Marriage: A Two-Sided Search Analysis,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(3), pages 955-986, August.
[Downloadable!] (restricted)
Shelly Lundberg & Robert A. Pollak, 2001.
"Efficiency in Marriage,"
NBER Working Papers
8642, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
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