Taxes and Household Labor Supply

Kelly Ragan
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Kelly Ragan: Stockholm School of Economics

No 216, 2009 Meeting Papers from Society for Economic Dynamics

Abstract: The empirical model that we develop is interesting in it's own right with respect to analyzing the impact of tax prices, incomes and marriage market conditions on husbands and wives labor supply decisions. For example, a unique feature of the Swedish tax data that we use is that we can track cohabitating couples even if they are not married. When we divide our sample into married and unmarried cohabitating couples we see that the impact of local marriage market conditions have a much larger effect on unmarried couples. Point estimates of the impact local age specific sex ratios are on the order of ten times larger for non-married couples than for married couples. How marriage reduces the influence of local marriage market conditions on intrahousehold allocations between cohabitating spouses is an interesting avenue for future research.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed009:216

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