IDEAS home Printed from https://ideas.repec.org/a/adr/anecst/y2015i117-118p141-155.html
   My bibliography  Save this article

Gender Bias in Tax Systems Based on Household Income

Author

Listed:
  • Yuri Andrienko
  • Patricia Apps
  • Ray Rees

Abstract

The assumption that household income is strongly and positively correlated with a household's real standard of living provides the basis for the joint taxation of families, which has the effect of discriminating against married women as second earners. This paper shows, in the context of a model of the household with young children present, that this assumption is not tenable. The fact that there is considerable heterogeneity in female labour supply which cannot be explained by wage rates and the number and ages of children requires us to look for other explanations, and we argue that these can be found in the variation of child care costs and productivities across households. When these are taken into account, we show, by theoretical modelling and numerical simulations based on survey data, that household income is a poor indicator of household well-being.

Suggested Citation

  • Yuri Andrienko & Patricia Apps & Ray Rees, 2015. "Gender Bias in Tax Systems Based on Household Income," Annals of Economics and Statistics, GENES, issue 117-118, pages 141-155.
  • Handle: RePEc:adr:anecst:y:2015:i:117-118:p:141-155
    DOI: 10.15609/annaeconstat2009.117-118.141
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/10.15609/annaeconstat2009.117-118.141
    Download Restriction: no

    File URL: https://libkey.io/10.15609/annaeconstat2009.117-118.141?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Boskin, Michael J. & Sheshinski, Eytan, 1983. "Optimal tax treatment of the family: Married couples," Journal of Public Economics, Elsevier, vol. 20(3), pages 281-297, April.
    2. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2012. "Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information," American Economic Review, American Economic Association, vol. 102(7), pages 3377-3405, December.
    3. Richard Blundell & Pierre-André Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
    4. Apps,Patricia & Rees,Ray, 2009. "Public Economics and the Household," Cambridge Books, Cambridge University Press, number 9780521887878, November.
    5. Martin Feldstein & Daniel R. Feenberg, 1996. "The Taxation of Two-Earner Families," NBER Chapters, in: Empirical Foundations of Household Taxation, pages 39-75, National Bureau of Economic Research, Inc.
    6. Patricia Apps & Ray Rees, 2010. "Family labor supply, taxation and saving in an imperfect capital market," Review of Economics of the Household, Springer, vol. 8(3), pages 297-323, September.
    7. Petter Lundborg; & Anton Nilsson; & Dan-Olof Rooth, 2012. "Parental education and offspring outcomes: evidence from the Swedish compulsory schooling reform," Health, Econometrics and Data Group (HEDG) Working Papers 12/12, HEDG, c/o Department of Economics, University of York.
    8. Apps, Patricia F. & Rees, Ray, 1988. "Taxation and the household," Journal of Public Economics, Elsevier, vol. 35(3), pages 355-369, April.
    9. Martin Feldstein & James M. Poterba, 1996. "Empirical Foundations of Household Taxation," NBER Books, National Bureau of Economic Research, Inc, number feld96-1, January.
    10. Apps, Patricia, 1982. "Institutional inequality and tax incidence," Journal of Public Economics, Elsevier, vol. 18(2), pages 217-242, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marisa Bucheli & Cecilia Olivieri, 2017. "Gendered Effects of the Personal Income Tax: Evidence from a Schedular System with Individual Filing in a Developing Country," Documentos de Trabajo (working papers) 0217, Department of Economics - dECON.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patricia Apps & Ray Rees, 2016. "Optimal Taxation, Income Inequality and the Household," CESifo Working Paper Series 5845, CESifo.
    2. Apps, Patricia & Rees, Ray, 2012. "Optimal Taxation, Child Care and Models of the Household," IZA Discussion Papers 6823, Institute of Labor Economics (IZA).
    3. Patricia Apps & Ray Rees, 2022. "Inequality measurement and tax/transfer policy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(4), pages 953-984, August.
    4. Patricia Apps & Ray Rees, 2018. "Optimal family taxation and income inequality," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(5), pages 1093-1128, October.
    5. Apps, Patricia & Rees, Ray, 1999. "On the taxation of trade within and between households," Journal of Public Economics, Elsevier, vol. 73(2), pages 241-263, August.
    6. Patricia Apps & Ray Rees, 2007. "The Taxation of Couples," Discussion Papers 07/21, Department of Economics, University of York.
    7. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2010. "Noncooperative household consumption with caring," Working Papers of Department of Economics, Leuven ces10.34, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    8. Gunnarsson Åsa & Eriksson Martin, 2017. "Eliminating the secondary earner bias. Policy lessons from the introduction of partial individual taxation in Sweden in 1971," Nordic Tax Journal, Sciendo, vol. 2017(1), pages 89-99, January.
    9. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute of Labor Economics (IZA).
    10. Mizuki Komura, 2013. "Tax reform and endogenous gender bargaining power," Review of Economics of the Household, Springer, vol. 11(2), pages 175-192, June.
    11. Patricia Apps, 2009. "Tax Reform, Targeting and the Tax Burden on Women," CEPR Discussion Papers 609, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    12. Cremer, Helmuth & Lozachmeur, Jean-Marie & Maldonado, Dario & Roeder, Kerstin, 2016. "Household bargaining and the design of couples’ income taxation," European Economic Review, Elsevier, vol. 89(C), pages 454-470.
    13. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    14. Jaime Andrés Sarmiento Espinel, 2012. "Parental investment in their children’s education," Serie documentos de trabajo del Centro de Estudios Económicos 2012-09, El Colegio de México, Centro de Estudios Económicos.
    15. Laurens Cherchye & Sam Cosaert & Thomas Demuynck & Bram De Rock, 2020. "Group Consumption with Caring Individuals," The Economic Journal, Royal Economic Society, vol. 130(627), pages 587-622.
    16. Cherchye, Laurens & Cosaert, Sam & De Rock, Bram & Kerstens, Pieter Jan & Vermeulen, Frederic, 2018. "Individual welfare analysis for collective households," Journal of Public Economics, Elsevier, vol. 166(C), pages 98-114.
    17. Pierre André Chiappori & José Ignacio Gimenez Nadal & José Alberto Molina & Alexandros Theloudis & Jorge Velilla, 2020. "Intrahousehold Commitment and Intertemporal Labor Supply," LISER Working Paper Series 2020-11, Luxembourg Institute of Socio-Economic Research (LISER).
    18. Sam Cosaert & Veerle Hennebel, 2023. "Parental Childcare with Process Benefits," Economica, London School of Economics and Political Science, vol. 90(357), pages 339-371, January.
    19. Patricia Apps & Ray Rees, 2012. "Capital Income Taxation and the Mirrlees Review," CEPR Discussion Papers 675, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    20. Laurens Cherchye & Thomas Demuynck & Bram De Rock, 2011. "Revealed Preference Analysis of Non‐Cooperative Household Consumption," Economic Journal, Royal Economic Society, vol. 121(555), pages 1073-1096, September.

    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2015:i:117-118:p:141-155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General or Laurent Linnemer (email available below). General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.