Does Taxation Affect Marriage and Family Planning Decisions?
This paper examines the effects of taxes on the timing of births and marriages in Japan using the "National Survey on Families" (Kazoku ni tsuite no Zenkoku Chousa). We estimate the average effect of the income tax deduction for dependents on the timing of births for those parents who are most likely to be affected by the tax deduction. Rather than estimating the average effects of the tax deduction on the timing of births for all parents, we focus only on those who are likely to be able to time their children's birth. In order to do this, we use a new control group, namely, those mothers whose age at the time of birth is 35 or older. It is assumed that for biological reasons they cannot time conception, whereas their younger counterparts are likely to time conception. The analysis of the effects of income tax deductions for spouses on the timing of marriage is an understudied area. Little attention has been paid to the impact of taxes on individual marriage decisions. Like the analysis of the timing of births, we estimate the average effect of the income tax deductions on the timing of marriages for those women who are most likely to be affected by the tax deduction policy. For this reason, women who have never worked before are the focus of this paper's analysis. There is some evidence to suggest that Japanese couples time conception to obtain some economic benefits associated with the deduction for dependents. However, the size of the effect is found to be rather small. Moreover, there is no evidence to suggest that the spouse deduction affects the decision of when to marry.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: 2-15-45, Mita, Minato-ku, Tokyo 108-8345|
Web page: http://ies.keio.ac.jp/old_project/old/gcoe-econbus/
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.:
- Wojciech Kopczuk & Joel Slemrod, 2001.
"Dying to Save Taxes: Evidence from Estate Tax Returns on the Death Elasticity,"
NBER Working Papers
8158, National Bureau of Economic Research, Inc.
- Wojciech Kopczuk & Joel Slemrod, 2003. "Dying to Save Taxes: Evidence from Estate-Tax Returns on the Death Elasticity," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 256-265, May.
- Kasey Buckles & Daniel M. Hungerman, 2008.
"Season of Birth and Later Outcomes: Old Questions, New Answers,"
NBER Working Papers
14573, National Bureau of Economic Research, Inc.
- Kasey S. Buckles & Daniel M. Hungerman, 2013. "Season of Birth and Later Outcomes: Old Questions, New Answers," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 711-724, July.
- Gelardi, Alexander M.G., 1996. "The Influence of Tax Law Changes on the Timing of Marriages: A Two-Country Analysis," National Tax Journal, National Tax Association, vol. 49(1), pages 17-30, March.
- James Alm & Stacy Dickert-Conlin & Leslie A. Whittington, 1999. "Policy Watch: The Marriage Penalty," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 193-204, Summer.
- Sjoquist, David L. & Walker, Mary Beth, 1995. "The Marriage Tax and the Rate and Timing of Marriage," National Tax Journal, National Tax Association, vol. 48(4), pages 547-58, December.
- Stacy Dickert-Conlin & Amitabh Chandra, 1999. "Taxes and the Timing of Birth," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 161-177, February.
- Burman, Leonard E & Randolph, William C, 1994. "Measuring Permanent Responses to Capital-Gains Tax Changes in Panel Data," American Economic Review, American Economic Association, vol. 84(4), pages 794-809, September.
When requesting a correction, please mention this item's handle: RePEc:kei:dpaper:2010-003. 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: (Global COE Program Office)
If references are entirely missing, you can add them using this form.