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Gender Based Taxation and the Division of Family Chores

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Author Info

  • Alesina, Alberto

    ()
    (Harvard University)

  • Ichino, Andrea

    ()
    (European University Institute)

  • Karabarbounis, Loukas

    ()
    (Harvard University)

Abstract

Gender Based Taxation (GBT) satisfies Ramsey’s optimal criterion by taxing less the more elastic labor supply of (married) women. This holds when different elasticities between men and women are taken as exogenous and primitive. But in this paper we also explore differences in gender elasticities which emerge endogenously in a model in which spouses bargain over the allocation of home duties. GBT changes spouses’ implicit bargaining power and induces a more balanced allocation of house work and working opportunities between males and females. Because of decreasing returns to specialization in home and market work, social welfare improves by taxing conditional on gender. When income sharing within the family is substantial, both spouses may gain from GBT.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3233.

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Length: 54 pages
Date of creation: Dec 2007
Date of revision:
Publication status: published in: American Economic Journal: Economic Policy, 2011, 3 (2), 1-40
Handle: RePEc:iza:izadps:dp3233

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Keywords: family economics; economics of gender; optimal taxation; elasticity of labor supply;

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References

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  1. Gender based taxation
    by Economic Logician in Economic Logic on 2009-02-21 03:09:00
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