Analyzing female labor supply — Evidence from a Dutch tax reform

Nicole Bosch and Bas van der Klaauw

Labour Economics, 2012, vol. 19, issue 3, 271-280

Abstract: Among OECD countries, the Netherlands has an average female labor force participation, but by far the highest rate of part-time work. This paper investigates the extent to which married women respond to financial incentives. We exploit exogenous variation caused by a substantial Dutch tax reform in 2001. Our main conclusion is that the positive significant effect of the tax reform on labor force participation dominates the negative insignificant effect on working hours. The latter contradicts the common empirical finding of positive wage elasticities. Our preferred explanation is that women respond more to changes in tax allowances than to changes in marginal tax rates.

Keywords: Uncompensated wage elasticity; Labor force participation; Working hours; Endogeneity (search for similar items in EconPapers)
JEL-codes: H24 J22 J38 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

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Related works:
Working Paper: Analyzing female labor supply: Evidence from a Dutch tax reform (2010)
Working Paper: Analyzing female labor supply -- Evidence from a Dutch tax reform (2009)
Working Paper: Analyzing Female Labor Supply: Evidence from a Dutch Tax Reform (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:19:y:2012:i:3:p:271-280

DOI: 10.1016/j.labeco.2012.01.002

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