Taxing Families: The Impact of Child-related Transfers on Maternal Labor Supply

Anne Hannusch ()

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: The employment rate of married women with and without pre-school children varies substantially across countries. To what extent can child-related transfers account for this variation? I develop a life-cycle model in which married couples jointly decide their labor supply, female human capital evolves endogenously, and some couples have access to grandparental childcare. I show that child-related transfers can explain most of the variation in the employment rates of married women, even after taking the labor income tax treatment and cross-country variation in childcare fees into account.

Keywords: Maternal Labor Supply; Nonlinear Transfers; Taxation; Two-earner Households (search for similar items in EconPapers)
JEL-codes: E62 H24 H31 J12 J22 (search for similar items in EconPapers)
Pages: 52
Date: 2019-08
New Economics Papers: this item is included in nep-mac, nep-ore and nep-pbe
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2019_067v2

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