This paper studies the effects of differential tax treatment toward married and single individuals in the US on marriage formation and composition, divorce and labor supply. We develop a marriage market model with search frictions and heterogeneous agents that is sufficiently rich to capture key elements of the problem under consideration. We then calibrate the model and use it to evaluate the quantitative effects of a number of tax reforms aimed at making the tax law neutral with respect to marital status. We find that reforms can have substantial effects on the labor supply of females and on the degree of assortative mating.
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Length: Date of creation: Dec 2000 Date of revision: Handle: RePEc:uwo:uwowop:200015
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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.
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References listed on IDEAS 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.:
S. Rao Aiyagari & Jeremy Greenwood & Nezih Guner, 2000.
"On the State of the Union,"
Journal of Political Economy,
University of Chicago Press, vol. 108(2), pages 213-244, April.
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Gary S. Becker, 1974.
"A Theory of Marriage: Part II,"
NBER Chapters,
in: Marriage, Family, Human Capital, and Fertility, pages 11-26
National Bureau of Economic Research, Inc.
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Killingsworth, Mark R. & Heckman, James J., 1987.
"Female labor supply: A survey,"
Handbook of Labor Economics,
in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204
Elsevier.
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