Evaluating the impact of the French tax credit on the employment rate of women
This paper investigates the employment impact of a new tax-credit programme that was put in place in France in 2001. According to the theoretical labour supply model, tax credits will have a positive effect on individual labour market participation as they increase the rewards from work. However, tax credits may discourage married women's participation mainly due to income effects. We analyse the introduction of the French measure by adopting a non-experimental evaluation method. Various treatment and control groups are defined. The first specification adopted relies on the policy eligibility rules for the construction of the control and treatment groups. The others hinge, respectively, on marital status, for women in couple-households, and on the presence of children, for single women. We find evidence of a negative employment effect for married women, with a reduction of about three percentage points in the employment rate after the introduction of the policy. In particular, it seems to be the conditioning on total household resources that discourages married women's labour market participation. On the contrary, the employment impact of the measure is positive for cohabiting women and twice as large. The policy effect is very small and statistically not significant for single women. The net impact of the introduction of the tax credit on the total employment of women is very marginal, amounting to the creation of about two thousand new jobs.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 92 (2008)
Issue (Month): 10-11 (October)
Pages: 2036-2047
| Handle: | RePEc:eee:pubeco:v:92:y:2008:i:10-11:p:2036-2047 |
| Contact details of provider: | Web page: http://www.elsevier.com/locate/inca/505578
|
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.:
- Mark B. Stewart, 2004.
"The Impact of the Introduction of the U.K. Minimum Wage on the Employment Probabilities of Low-Wage Workers,"
Journal of the European Economic Association,
MIT Press, vol. 2(1), pages 67-97, 03.
- Stewart, Mark B., 2002. "The Impact Of The Introduction Of The Uk Minimum Wage On The Employment Probabilities Of Low Wage Workers," The Warwick Economics Research Paper Series (TWERPS) 630, University of Warwick, Department of Economics.
- Stewart, Mark B., 2002. "The Impact of the Introduction of the UK Minimum Wage on the Employment Probabilities of Low Wage Workers," Royal Economic Society Annual Conference 2002 169, Royal Economic Society.
- Elena Stancanelli, 2007. "Marriage and Work: an analysis for French couples in the last decade," Documents de Travail de l'OFCE 2007-10, Observatoire Francais des Conjonctures Economiques (OFCE).
- Olivier Donni & Nicolas Moreau, 2005.
"Collective Labor Supply: a Single-Equation Model and Some Evidence from French Data,"
Cahiers de recherche
0516, CIRPEE.
- Olivier Donni & Nicolas Moreau, 2007. "Collective Labor Supply: A Single-Equation Model and Some Evidence from French Data," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
- François Bourguignon & Thierry Magnac, 1990. "Labor Supply and Taxation in France," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 358-389.
- V. Joseph Hotz, 2003.
"The Earned Income Tax Credit,"
NBER Chapters,
in: Means-Tested Transfer Programs in the United States, pages 141-198
National Bureau of Economic Research, Inc.
- V. Joseph Hotz & John Karl Scholz, 2001. "The Earned Income Tax Credit," NBER Working Papers 8078, National Bureau of Economic Research, Inc.
- Gabor Kezdi, 2005. "Robus Standard Error Estimation in Fixed-Effects Panel Models," Econometrics 0508018, EconWPA.
- Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2001. "Evaluating the employment impact of a mandatory job search assistance program," IFS Working Papers W01/20, Institute for Fiscal Studies.
- Elena Stancanelli & Henri Sterdyniak, 2004.
"Un bilan des études sur la prime pour l'emploi,"
Sciences Po publications
info:hdl:2441/5270, Sciences Po.
- Elena G. F. Stancanelli & Henri Sterdyniak, 2004. "Un bilan des études sur la Prime pour l'emploi," Revue de l'OFCE, Presses de Sciences-Po, vol. 88(1), pages 17-41.
- Elena Stancanelli & Henri Sterdyniak, 2004. "Un bilan des études sur la prime pour l'emploi," Post-Print hal-01019655, HAL.
- Thomas Piketty, 1998. "L'impact des incitations financières au travail sur les comportements individuels : une estimation pour le cas français," Économie et Prévision, Programme National Persée, vol. 132(1), pages 1-35.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002.
"How Much Should We Trust Differences-in-Differences Estimates?,"
NBER Working Papers
8841, National Bureau of Economic Research, Inc.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
- Stephen R. G. Jones & W. Craig Riddell, 2006.
"Unemployment and Nonemployment: Heterogeneities in Labor Market States,"
The Review of Economics and Statistics,
MIT Press, vol. 88(2), pages 314-323, May.
- Stephen R.G. Jones & W. Craig Riddell, 2002. "Unemployment and Non-Employment: Heterogeneities in Labour Market States," Department of Economics Working Papers 2002-05, McMaster University.
- Hilary Hoynes & Richard Blundell, 2001.
"Has "In-Work" Benefit Reform Helped the Labour Market?,"
NBER Working Papers
8546, National Bureau of Economic Research, Inc.
- Richard Blundell & Hilary W. Hoynes, 2004. "Has 'In-Work' Benefit Reform Helped the Labor Market?," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 411-460 National Bureau of Economic Research, Inc.
- Bruce D. Meyer & Dan T. Rosenbaum, 1998.
"Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers,"
JCPR Working Papers
32, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 1063-1114.
- Bruce D. Meyer & Dan T. Rosenbaum, 1999. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," NBER Working Papers 7363, National Bureau of Economic Research, Inc.
- Marianne Bitler & Jonah Gelbach & Hilary Hoynes & Madeline Zavodny, 2004.
"The impact of welfare reform on marriage and divorce,"
Demography,
Springer;Population Association of America (PAA), vol. 41(2), pages 213-236, May.
- Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes & Madeline Zavodny, 2004. "The Impact of Welfare Reform on Marriage and Divorce," Working Papers 110, RAND Corporation.
- Marianne Bitler & Jonah B. Gelbach & Hilary W. Hoynes & Madeline Zavodny, 2002. "The impact of welfare reform on marriage and divorce," FRB Atlanta Working Paper 2002-9, Federal Reserve Bank of Atlanta.
- Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004.
"Evaluating the Employment Impact of a Mandatory Job Search Program,"
Journal of the European Economic Association,
MIT Press, vol. 2(4), pages 569-606, 06.
- Blundell, Richard William & Costa Dias, Monica & Meghir, Costas & Van Reenen, John, 2003. "Evaluating the Employment Impact of a Mandatory Job Search Programme," CEPR Discussion Papers 3786, C.E.P.R. Discussion Papers.
- Eissa, Nada & Hoynes, Hilary Williamson, 2004. "Taxes and the labor market participation of married couples: the earned income tax credit," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1931-1958, August.
- Ellwood, David T., 2000. "The Impact of the Earned Income Tax Credit and Social Policy Reforms on Work, Marriage, and Living Arrangements," National Tax Journal, National Tax Association, vol. 53(n. 4), pages 1063-1106, December.
- Mark B. Stewart, 2004. "The employment effects of the national minimum wage," Economic Journal, Royal Economic Society, vol. 114(494), pages C110-C116, 03.
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:92:y:2008:i:10-11:p:2036-2047. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.