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Gender-based and couple-based taxation

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Listed author(s):
  • Spencer Bastani

    ()

Abstract

In this paper, I explore the optimal taxation of singles and couples in an economy with bargaining couples. The government is concerned with the redistribution of income from individuals with high utility to individuals with low utility, recognizing that some individuals live in couple households where resources are unevenly distributed. I analyze how redistributive linear income taxes, which depend on either gender or household composition (or both) impact the distribution of utility within and across households. An interesting implication arising from the interaction between the model elements is that even though between-group lump-sum transfers always favor women, when the bargaining power of men is high, women are subject to a higher tax rate; this in contrast to previous analyses of gender-based taxation. My quantitative analysis demonstrates that the welfare effects of gender-based taxation are sizable and even larger when taxes depend on the composition of the household. Copyright Springer Science+Business Media New York 2013

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File URL: http://hdl.handle.net/10.1007/s10797-013-9285-9
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Article provided by Springer & International Institute of Public Finance in its journal International Tax and Public Finance.

Volume (Year): 20 (2013)
Issue (Month): 4 (August)
Pages: 653-686

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Handle: RePEc:kap:itaxpf:v:20:y:2013:i:4:p:653-686
DOI: 10.1007/s10797-013-9285-9
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Keywords: Optimal taxation; Tagging; Intra-household bargaining; H21; D13; J16;

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Find related papers by JEL classification:
  • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
  • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
  • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
  • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

References listed on IDEAS
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  1. Spencer Bastani & Sören Blomquist & Luca Micheletto, 2013. "The Welfare Gains Of Age‐Related Optimal Income Taxation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54, pages 1219-1249, November.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. How to best tax by gender and marital status
    by Economic Logician in Economic Logic on 2012-04-23 13:51:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:

  1. Spencer Bastani & Jacob Lundberg, 2016. "Political Preferences for Redistribution in Sweden," CESifo Working Paper Series 6205, CESifo Group Munich.
  2. Patricia Gallego-Granados & Johannes Geyer, 2015. "Distributional and Behavioral Effects of the Gender Wage Gap," SOEPpapers on Multidisciplinary Panel Data Research 753, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. 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.
  4. Spencer Bastani & Sören Blomquist & Luca Micheletto, 2016. "Public Pensions in a Multi-Period Mirrleesian Income Tax Model," CESifo Working Paper Series 6206, CESifo Group Munich.
  5. Kanbur, Ravi & Tuomala, Matti, 2016. "Groupings and the gains from tagging," Research in Economics, Elsevier, vol. 70(1), pages 53-63.
  6. Bastani, Spencer & Lundberg, Jacob, 2016. "Political preferences for redistribution in Sweden," Working Paper Series 2016:13, Uppsala University, Department of Economics.
  7. Gerritsen, Aart, 2016. "Optimal taxation when people do not maximize well-being," Journal of Public Economics, Elsevier, vol. 144(C), pages 122-139.

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