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Taxation and parental time allocation under different assumptions on altruism

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  • Alessandra Casarico

    () (Bocconi University
    Dondena Centre for Research on Social Dynamics and Public Policy
    CESIfo)

  • Alessandro Sommacal

    (Dondena Centre for Research on Social Dynamics and Public Policy
    University of Verona)

Abstract

Abstract This paper examines the effects of labor income taxation on parental time allocation in an OLG model in which child care arrangements, that is the combination of parental and non-parental time, matter for human capital accumulation. We show that the sign of the impact of labor income taxation on parental time with children and on growth critically depends on the assumption on the altruistic motives behind the choice of devoting time to children.

Suggested Citation

  • Alessandra Casarico & Alessandro Sommacal, 2018. "Taxation and parental time allocation under different assumptions on altruism," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(1), pages 140-165, February.
  • Handle: RePEc:kap:itaxpf:v:25:y:2018:i:1:d:10.1007_s10797-017-9447-2
    DOI: 10.1007/s10797-017-9447-2
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    More about this item

    Keywords

    Early childhood environment; Child care; Labor supply; Paternalism; Full altruism;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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