Joint Taxation and the Labour Supply of Married Women: Evidence from the Canadian Tax Reform of 1988
AbstractThe Canadian federal tax reform of 1988 replaced a spousal tax exemption with a non-refundable tax credit. This reduced the "jointness" of the tax system: after the reform, secondary earners' effective "first dollar" marginal tax rates no longer depended on the marginal tax rates of their spouses. In practice, the effective "first dollar" marginal tax rates faced by women with high income husbands were particularly reduced. Using difference-in-difference estimators, we find a significant increase in labour force participation among women married to higher income husbands.
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Bibliographic InfoPaper provided by McMaster University in its series Quantitative Studies in Economics and Population Research Reports with number 404.
Length: 43 pages
Date of creation: Feb 2006
Date of revision:
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Labour supply; Canadian tax reform; Married women; Difference-in-difference;
Other versions of this item:
- Thomas F. Crossley & Sung-Hee Jeon, 2007. "Joint Taxation and the Labour Supply of Married Women: Evidence from the Canadian Tax Reform of 1988," Fiscal Studies, Institute for Fiscal Studies, vol. 28(3), pages 343-365, 09.
- Thomas F. Crossley & Sung-Hee Jeon, 2006. "Joint Taxation and the Labour Supply of Married Women: Evidence from the Canadian Tax Reform of 1988," Social and Economic Dimensions of an Aging Population Research Papers 149, McMaster University.
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-02 (All new papers)
- NEP-PBE-2006-07-02 (Public Economics)
- NEP-PUB-2006-07-02 (Public Finance)
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