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Household chores, taxes, and the labor-supply elasticities of women and men

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  • Bahn, Dorothée
  • Bredemeier, Christian
  • Juessen, Falko

Abstract

We study how the division of household chores and individual preferences contribute to gender differences in labor supply elasticities and examine the implications for optimal taxation. In a model of labor supply in dual-earner households, we show that elasticities and optimal income tax rates depend jointly on gender and the within-household allocation of chores. Using PSID data, we find that chore division substantially affects labor supply elasticities, whereas gender per se plays a smaller role. We then evaluate how well simple, feasible tax rules can approximate the optimal within-household tax structure. Gender-based taxation captures a sizable share of the potential efficiency gains, but gender-neutral rules with realistic levels of progressivity perform better.

Suggested Citation

  • Bahn, Dorothée & Bredemeier, Christian & Juessen, Falko, 2025. "Household chores, taxes, and the labor-supply elasticities of women and men," Ruhr Economic Papers 1177, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:330181
    DOI: 10.4419/96973362
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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