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Taxes and gender equality: The incidence of the ‘tampon tax’

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  • Buettner, Thiess
  • Hechtner, Frank
  • Madzharova, Boryana

Abstract

This paper uses a permanent reduction of the “tampon tax” in Germany to study the price and unit-sales effects of the tax. Exploiting an extensive data set on the sales and scanner prices of feminine hygiene products in Germany and Italy, our results show that the incidence of tampon taxes is fully on consumers, while demand for these products is price-inelastic. We do not find cross-price effects for a closely related product group, which remained taxed at the standard tax rate. We conclude that reducing taxes on feminine hygiene products could be an effective measure to address “period poverty”.

Suggested Citation

  • Buettner, Thiess & Hechtner, Frank & Madzharova, Boryana, 2025. "Taxes and gender equality: The incidence of the ‘tampon tax’," European Economic Review, Elsevier, vol. 177(C).
    • Handle: RePEc:eee:eecrev:v:177:y:2025:i:c:s0014292125001047
    DOI: 10.1016/j.euroecorev.2025.105054
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    12. Ingvil Gaarder, 2019. "Incidence and Distributional Effects of Value Added Taxes," The Economic Journal, Royal Economic Society, vol. 129(618), pages 853-876.
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    Cited by:

    1. Deza, María Cecilia & Dondo, Mariana & Jara, H. Xavier & Rodríguez, David & Torres, Javier, 2025. "The role of tax-benefit systems in reducing the gender income gap in Latin America," LSE Research Online Documents on Economics 129049, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

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    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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