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Taxes and Market Hours -- the Role of Gender and Skill

Author

Listed:
  • Rachel Ngai

    (london school of economics)

  • Lei Fang

    (Federal Reserve Bank of Atlanta)

  • Robert Duval Hernandez

    (Unversity of Cyprus)

Abstract

This paper documents that cross-country difference in aggregate market hours is mainly due to women's market hours, especially low-skilled women. Using a multi- sector model that allows for both gender and skill dimensions, it shows that taxes and social subsidies on family care account for a substantial fraction of the observed cross- country pattern in market hours. Both substitution margins across work and leisure and across market and home are important. Effects of taxes operate through both margins while social subsidies operate mainly through the second margin. The first margin affects all population groups while the second margin affects mostly women especially low-skilled.

Suggested Citation

  • Rachel Ngai & Lei Fang & Robert Duval Hernandez, 2017. "Taxes and Market Hours -- the Role of Gender and Skill," 2017 Meeting Papers 680, Society for Economic Dynamics.
  • Handle: RePEc:red:sed017:680
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    References listed on IDEAS

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    1. repec:aea:aejmac:v:9:y:2017:i:3:p:116-46 is not listed on IDEAS
    2. Claudia Olivetti & Barbara Petrongolo, 2008. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 621-654, October.
    3. D├╝rnecker, Georg & Herrendorf, Berthold, 2014. "On the Allocation of Time," Working Papers 14-09, University of Mannheim, Department of Economics.
    4. Alessio Moro & Solmaz Moslehi & Satoshi Tanaka, 2017. "Does Home Production Drive Structural Transformation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(3), pages 116-146, July.
    5. Mark Aguiar & Erik Hurst & Loukas Karabarbounis, 2012. "Recent Developments in the Economics of Time Use," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 373-397, July.
    6. Chakraborty, Indraneel & Holter, Hans A. & Stepanchuk, Serhiy, 2015. "Marriage stability, taxation and aggregate labor supply in the U.S. vs. Europe," Journal of Monetary Economics, Elsevier, vol. 72(C), pages 1-20.
    7. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
    8. Georg Duernecker & Berthold Herrendorf, 2015. "On the Allocation of Time - A Quantitative Analysis of the U.S. and France," CESifo Working Paper Series 5475, CESifo Group Munich.
    9. Fang Lei & McDaniel Cara, 2017. "Home hours in the United States and Europe," The B.E. Journal of Macroeconomics, De Gruyter, vol. 17(1), pages 1-27, January.
    10. Alexander M. Gelber & Joshua W. Mitchell, 2012. "Taxes and Time Allocation: Evidence from Single Women and Men," Review of Economic Studies, Oxford University Press, vol. 79(3), pages 863-897.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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