Marriage Penalties and Bonuses by Race and Ethnicity: An Application of Race and Ethnicity Imputation

Rachel Costello, Portia DeFilippes, Robin Fisher, Ben Klemens and Emily Y. Lin

AEA Papers and Proceedings, 2024, vol. 114, 644-48

Abstract: The Office of Tax Analysis of the Treasury Department imputes race and ethnicity information to its tax model. We apply the imputed information to the calculation of marriage penalties and bonuses for married couples and find differences in the penalty and bonus rates facing married couples of different races and ethnic backgrounds; the differences vary by income. The results show that for couples in higher-income classes, the penalty is more prevalent for Black and Hispanic couples than White couples, and the Black-White differences by income are consistent with the patterns of spousal income splits in the underlying data.

JEL-codes: H24 J12 J15 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1257/pandp.20241036

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