Marriage penalties, marriage, and cohabitation
AbstractI examine the effect of marriage penalties in the US income tax system on marital status. I construct a simulated instrument that exploits variation in the tax code over time and between US states to deal with potential endogeneity between the marriage penalty a couple faces and their marital status. I find that a $1000 increase in the marriage penalty faced reduces the probability of marriage by 1.7 percentage points, an effect four times larger than previously estimated. Those in the lowest education groups respond by as much as 2.7 percentage points, with the average response declining as education increases.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Sydney, School of Economics in its series Working Papers with number 2011-12.
Date of creation: Sep 2011
Date of revision:
marriage; cohabitation; marriage penalty;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-21 (All new papers)
- NEP-DEM-2011-11-21 (Demographic Economics)
- NEP-LAB-2011-11-21 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daniel R. Feenberg & Harvey S. Rosen, 1994.
"Recent Developments in the Marriage Tax,"
NBER Working Papers
4705, National Bureau of Economic Research, Inc.
- Leigh Andrew, 2010.
"Who Benefits from the Earned Income Tax Credit? Incidence among Recipients, Coworkers and Firms,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 10(1), pages 1-43, May.
- Andrew Leigh, 2005. "Who Benefits from the Earned Income Tax Credit? Incidence Among Recipients, Coworkers and Firms," CEPR Discussion Papers 494, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Leigh, Andrew, 2010. "Who Benefits from the Earned Income Tax Credit? Incidence among Recipients, Coworkers and Firms," IZA Discussion Papers 4960, Institute for the Study of Labor (IZA).
- Whittington, L.A. & Peters, H.E., 1989.
"Fertility And The Personal Exemption: Implicit Pronatalist Policy In The United States,"
University of Chicago - Economics Research Center
89-6, Chicago - Economics Research Center.
- Whittington, Leslie A & Alm, James & Peters, H Elizabeth, 1990. "Fertility and the Personal Exemption: Implicit Pronatalist Policy in the United States," American Economic Review, American Economic Association, vol. 80(3), pages 545-56, June.
- Leslie A. Whittington & James Alm & H. Elizabeth Peters, . "Fertility and the Personal Exemption: Implicit Pronatalist Policy in the United States," University of Chicago - Population Research Center 89-6, Chicago - Population Research Center.
- Janet Holtzblatt & Robert Rebelein, 2000. "Measuring the Effect of the EITC on Marriage Penalties and Bonuses," JCPR Working Papers 127, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Sjoquist, David L. & Walker, Mary Beth, 1995. "The Marriage Tax and the Rate and Timing of Marriage," National Tax Journal, National Tax Association, vol. 48(4), pages 547-58, December.
- LaLumia, Sara, 2008.
"The effects of joint taxation of married couples on labor supply and non-wage income,"
Journal of Public Economics,
Elsevier, vol. 92(7), pages 1698-1719, July.
- Sara LaLumia, 2006. "The Effects of Joint Taxation of Married Couples on Labor Supply and Non-wage Income," Working Papers 28, Department of Economics, College of William and Mary.
- James Alm & Stacy Dickert-Conlin & Leslie A. Whittington, 1999. "Policy Watch: The Marriage Penalty," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 193-204, Summer.
- Daniel Feenberg & Elisabeth Coutts, 1993. "An introduction to the TAXSIM model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 189-194.
- Frank F. Furstenberg, 2007. "Should government promote marriage?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(4), pages 956-960.
- Alm, James & Whittington, Leslie A, 1999. "For Love or Money? The Impact of Income Taxes on Marriage," Economica, London School of Economics and Political Science, vol. 66(263), pages 297-316, August.
- Stevenson, Adam, 2012.
"The Labor Supply And Tax Revenue Consequences Of Federal Same-Sex Marriage Legalization,"
National Tax Journal,
National Tax Association, vol. 65(4), pages 783-806, December.
- Stevenson, Adam, 2012. "The Labor Supply and Tax Revenue Consequences of Federal Same-Sex Marriage Legalization," MPRA Paper 36532, University Library of Munich, Germany.
- Fisher, Hayley, 2012. "Just a piece of paper? The effect of marriage on health," Working Papers 2012-17, University of Sydney, School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vanessa Holcombe).
If references are entirely missing, you can add them using this form.