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Taxation and Labor Supply of Married Women across Countries: A Macroeconomic Analysis

  • Bick, Alexander
  • Fuchs-Schündeln, Nicola

We document contemporaneous differences in the aggregate labor supply of married couples across 19 OECD countries. We quantify the contribution of international differences in non-linear labor income taxes and consumption taxes, as well as male and female wages, to the international differences in the data. Our model replicates the comparatively small differences of married men's hours worked very well. Moreover, taxes and wages account for a large part of the observed substantial differences in married women's labor supply between the US and Western, Eastern, and Northern Europe, but cannot explain the low labor supply of married women in Southern Europe.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9115.

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Date of creation: Sep 2012
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Handle: RePEc:cpr:ceprdp:9115
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