Family Labour Supply and Taxes in Ireland
We analyse the labour supply of husband and wife in Irish families. A static structural model used. Account is taken of nonlinearities and non-convexities in tax-benefit system, of fixed costs of working, of unobserved preference variation across families, of prediction errors in wages of non-workers and of potential endogeneity of gross wage rates. Moreover the neoclassical model is extended such that information on involuntary unemployment is incorporated in a structural way. Smooth simulated maximum likelihood is used to estimate the model, using household data from 1997. The Irish tax system is characterized by ?income splitting? so that the tax liability of the couple depends essentially on the joint income of husband and wife. We analyse the sensitivity of husbands? and wives? labour supply with respect to the own wage, the partner's wage, and other income. We compare labour supply under the actual tax regime and under alternatives involving more independent taxation, and analyse the extent to which the tax system can explain the low participation of married women in Ireland.
|Date of creation:||Oct 1996|
|Date of revision:|
|Contact details of provider:|| Postal: Whitaker Square, Sir John Rogerson's Quay, Dublin 2|
Phone: (353-1) 863 2000
Fax: (353-1) 863 2100
Web page: http://www.esri.ie
More information through EDIRC
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.:
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Blundell, Richard & Ham, John & Meghir, Costas, 1987.
"Unemployment and Female Labour Supply,"
Royal Economic Society, vol. 97(388a), pages 44-64, Supplemen.
- Richard Blundell & Ian Walker, 1986. "A Life-Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data," Review of Economic Studies, Oxford University Press, vol. 53(4), pages 539-558.
- Kapteyn, A. & Soest, A.V. & Woittiez, I., 1989.
"Labour Supply, Income Taxes And Hours Restrictions In The Netherlands,"
8903, Tilburg - Center for Economic Research.
- Arthur van Soest & Isolde Woittiez & Arie Kapteyn, 1990. "Labor Supply, Income Taxes, and Hours Restrictions in the Netherlands," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 517-558.
- van Soest, A.H.O. & Woittiez, I.B. & Kapteyn, A.J., 1989. "Labour supply, income taxes and hours restrictions in the Netherlands," Discussion Paper 1989-3, Tilburg University, Center for Economic Research.
- Kapteyn, Arie & Kooreman, Peter & van Soest, Arthur, 1990.
"Quantity Rationing and Concavity in a Flexible Household Labor Supply Model,"
The Review of Economics and Statistics,
MIT Press, vol. 72(1), pages 55-62, February.
- Kapteyn, A.J. & Kooreman, P. & van Soest, A.H.O., 1989. "Quantity rationing and concavity in a flexible household labor supply model," Discussion Paper 1989-16, Tilburg University, Center for Economic Research.
- Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-66, October.
- Jerry A. Hausman & Paul Ruud, 1984.
"Family Labor Supply With Taxes,"
NBER Working Papers
1271, National Bureau of Economic Research, Inc.
- Hausman, Jerry A, 1985. "The Econometrics of Nonlinear Budget Sets," Econometrica, Econometric Society, vol. 53(6), pages 1255-82, November.
- Ransom, Michael R, 1987. "An Empirical Model of Discrete and Continuous Choice in Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 465-72, August.
- 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.
- Callan, T. & van Soest, A.H.O., 1993.
"Female labour supply in farm households : Farm and off-farm participation,"
1993-10, Tilburg University, Center for Economic Research.
- Callan, T. & VAN Soest, A., 1993. "Female Labour Supply in Farm Households: Farm and Off-Farm Participation," Papers 9310, Tilburg - Center for Economic Research.
- Blomquist, N. Soren, 1988. "Nonlinear taxes and labor supply," European Economic Review, Elsevier, vol. 32(6), pages 1213-1226, July.
- Gourieroux, Christian & Monfort, Alain, 1993. "Simulation-based inference : A survey with special reference to panel data models," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 5-33, September.
- Dickens, William T & Lundberg, Shelly J, 1993.
"Hours Restrictions and Labor Supply,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 169-92, February.
- Callan, Tim & Nolan, Brian & Whelan, Brendan J. & Hannan, Damian F. & Creighton, S., 1989. "Poverty, Income and Welfare in Ireland," Research Series, Economic and Social Research Institute (ESRI), number GRS146.
- Stern, Steven, 1992. "A Method for Smoothing Simulated Moments of Discrete Probabilities in Multinomial Probit Models," Econometrica, Econometric Society, vol. 60(4), pages 943-52, July.
- Thomas MaCurdy & David Green & Harry Paarsch, 1990. "Assessing Empirical Approaches for Analyzing Taxes and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 415-490.
- van Soest, A.H.O. & Kooreman, P. & Kapteyn, A.J., 1990.
"Coherency and regularity of demand systems with equality and inequality constraints,"
1990-1, Tilburg University, Center for Economic Research.
- Soest, Arthur van & Kapteyn, Arie & Kooreman, Peter, 1993. "Coherency and regularity of demand systems with equality and inequality constraints," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 161-188.
- Tim Callan, 1991. "Male-Female Wage Differentials in Ireland," Papers WP028, Economic and Social Research Institute (ESRI).
When requesting a correction, please mention this item's handle: RePEc:esr:wpaper:wp078. 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: (Sarah Burns)
If references are entirely missing, you can add them using this form.