Taxes and Marriage: A Two-Sided Search Analysis
This article analyzes the effects of differential tax treatment of married and single individuals in the United States 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 several tax reforms aimed at making the tax law neutral with respect to marital status. We find that these reforms (i) systematically increase the labor supply of married females, with changes ranging from 0.3 to 10.1 percent; (ii) have substantial effects on the correlation of spouses' incomes, which changes from 0.2 to values between 0.185 and 0.334; (iii) can lead to either an increase or decrease in the fraction of people married, with changes that range from - 0:6 to 2.4 percent. Copyright Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
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): 43 (2002)
Issue (Month): 3 (August)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |
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.:
- Judd, Kenneth L., 1985. "The law of large numbers with a continuum of IID random variables," Journal of Economic Theory, Elsevier, vol. 35(1), pages 19-25, February.
- Shimer, R. & Smith, L., 1998.
"Assortive Matching and Search,"
98-09, Michigan - Center for Research on Economic & Social Theory.
- Shimer, R. & Smith, L., 1997. "Assortative Matching and Search," Working papers 97-2a, Massachusetts Institute of Technology (MIT), Department of Economics.
- Shimer, R. & Smith, L., 1997. "Assortative Matching and Search," Working papers 97-2b, Massachusetts Institute of Technology (MIT), Department of Economics.
- Teresa Martin & Larry Bumpass, 1989. "Recent trends in marital disruption," Demography, Springer;Population Association of America (PAA), vol. 26(1), pages 37-51, February.
- Hector Chade, "undated".
"Two-Sided Search and Perfect Segregation with Fixed Search Costs,"
2132861, Department of Economics, W. P. Carey School of Business, Arizona State University.
- Chade, Hector, 2001. "Two-sided search and perfect segregation with fixed search costs," Mathematical Social Sciences, Elsevier, vol. 42(1), pages 31-51, July.
- 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.
- Eric French, 2005.
"The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour,"
Review of Economic Studies,
Oxford University Press, vol. 72(2), pages 395-427.
- Eric French, 2004. "The Effects of Health, Wealth and Wages on Labor Supply and Retirement Behavior," 2004 Meeting Papers 96, Society for Economic Dynamics.
- Eric French, 2000. "The effects of health, wealth, and wages on labor supply and retirement behavior," Working Paper Series WP-00-2, Federal Reserve Bank of Chicago.
- Jeremy Greenwood & Nezih Guner & John Knowles, 1999.
"More on marriage, fertility, and the distribution of income,"
9904, Federal Reserve Bank of Cleveland.
- Jeremy Greenwood & Nezih Guner & John A. Knowles, 2003. "More on Marriage, Fertility, and the Distribution of Income," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(3), pages 827-862, 08.
- Jeremy Greenwood & Nezih Guner & John Knowles, "undated". "More on Marriage, Fertility, and the Distribution of Inocome," Penn CARESS Working Papers 65f9ffed93b3a872de23c94c2, Penn Economics Department.
- Jeremy Greenwood & Nezih Guner & John Knowles, "undated". "More on Marriage, Fertility, and the Distribution of Inocome," CARESS Working Papres 99-05, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Jeremy Greenwood & Nezih Guner & John Knowles, 2002. "More on Marriage, Fertility and the Distribution of Income," RCER Working Papers 489, University of Rochester - Center for Economic Research (RCER).
- Greenwood, J. & Guner, N. & Knkwles, J., 1999. "More on Marriage, Fertility, and the Distribution of Income," Papers 9904, London School of Economics - Centre for Labour Economics.
- Edward C. Prescott, 1986.
"Theory ahead of business cycle measurement,"
102, Federal Reserve Bank of Minneapolis.
- Prescott, Edward C., 1986. "Theory ahead of business-cycle measurement," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 25(1), pages 11-44, January.
- Edward C. Prescott, 1986. "Theory ahead of business cycle measurement," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall, pages 9-22.
- 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.
- BLOCH, Francis & RYDER, Harl, 1994.
"Two-Sided Search, Marriages and Matchmakers,"
CORE Discussion Papers
1994028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Alm, James & Whittington, Leslie A., 1997. "Income taxes and the timing of marital decisions," Journal of Public Economics, Elsevier, vol. 64(2), pages 219-240, May.
- Lones Smith, 2006. "The Marriage Model with Search Frictions," Journal of Political Economy, University of Chicago Press, vol. 114(6), pages 1124-1146, December.
- Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-846, July-Aug..
- repec:ntj:journl:v:48:y:1995:i:no._4:p:547-58 is not listed on IDEAS
- Ken Burdett & Randall Wright, 1998.
"Two-Sided Search with Nontransferable Utility,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 220-245, January.
- 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 547-558, December.
- Blundell, Richard & Macurdy, Thomas, 1999.
"Labor supply: A review of alternative approaches,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695
- Maria Cancian & Deborah Reed, 1999. "The impact of wives’ earnings on income inequality: Issues and estimates," Demography, Springer;Population Association of America (PAA), vol. 36(2), pages 173-184, May.
- Feldman, Mark & Gilles, Christian, 1985. "An expository note on individual risk without aggregate uncertainty," Journal of Economic Theory, Elsevier, vol. 35(1), pages 26-32, February.
- Ken Burdett & Melvyn G. Coles, 1997. "Marriage and Class," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 141-168.
- Berliant, Marcus & Rothstein, Paul, 2003. "Possibility, Impossibility, and History in the Origins of the Marriage Tax," National Tax Journal, National Tax Association, vol. 56(2), pages 303-317, June.
- repec:ntj:journl:v:48:y:1995:i:no._4:p:565-72 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:43:y:2002:i:3:p:955-986. 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: (Wiley-Blackwell Digital Licensing)or ()
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.