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A collective model for female labour supply with nonparticipation and taxation

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  • Frederic Vermeulen

Abstract

In this paper, a collective discrete choice model is presented for female labour supply. Both preferences of females and the intrahousehold decision process are econometrically identifiable. The model incorporates nonparticipation and nonlinear taxation. It is applied to Belgian microdata and is used to evaluate the 2001 Tax Reform Act. We find moderate negative behavioural responses to the reform. The tax reform further implies a Pareto improvement for most of the households in the sample.

Suggested Citation

  • Frederic Vermeulen, 2002. "A collective model for female labour supply with nonparticipation and taxation," Public Economics Working Paper Series ces0214, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
    • Handle: RePEc:wpe:papers:ces0214
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    More about this item

    Keywords

    collective household models; intrahousehold allocation; labour supply; tax reform; identification;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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