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Women's and men's responses to in-work benefits: The influence of younger children

Author

Listed:
  • Andrén, Daniela

    (Örebro University School of Business)

  • Andrén, Thomas

    (The Swedish Confederation of Professional Associations and IZA)

Abstract

This study examines how the non-targeted earned income tax credit (EITC) introduced in Sweden in 2007 has affected the labor supply of men and women living together in two-adault households and the extent to which children affect related outcomes. Using a structural discrete labor supply model for two adult households, we estimate the impact of the EITC on both labor supply and disposable income separately for households with and without children. Our results suggest that wage elasticities differ for men and women with or without children, a result that is in line with earlier literature. However, women increased their labor supply bu 0.9 percent regardless of children in the household, whereas men with children increased their labor supply by approximately 0.5 percent and those without children increased their labor supply by 0.7 percent.

Suggested Citation

  • Andrén, Daniela & Andrén, Thomas, 2014. "Women's and men's responses to in-work benefits: The influence of younger children," Working Papers 2014:1, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2014_001
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    structural discrete labor supply model; EITC; younger children; two-adult households;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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