EconPapers    
Economics at your fingertips  
 

Female Market Work, Tax Regimes, and the Rise of the Service Sector

Michelle Rendall

Review of Economic Dynamics, 2018, vol. 28, 269-289

Abstract: US regional variation shows a positive correlation between the size of the service economy and female market hours, which is partially driven by different tax regimes. Based on this fact, this paper develops a multi-sector model to: (1) quantify the effect of different tax regimes in incentivizing woman to enter the labor force, and (2) estimate the feedback effect from women entering the labor force on the service sector size. Counterfactual results suggest that tax progressivity has a stronger effect than tax levels on married female market hours and the speed of structural transformation. In addition, married households react more to progressivity increases and single households are more sensitive to level changes. These results highlight that models ignoring tax structures (levels and progressivity) and household heterogeneity (dual versus single earning households) could lead to erroneous policy conclusions. (Copyright: Elsevier)

Keywords: technological progress; sectoral labor allocation; female labor supply; labor demand; taxation (search for similar items in EconPapers)
JEL-codes: E21 E24 J20 O14 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1016/j.red.2017.09.002
Access to full texts is restricted to ScienceDirect subscribers and institutional members. See http://www.sciencedirect.com/ for details.

Related works:
Software Item: Code and data files for "Female Market Work, Tax Regimes, and the Rise of the Service Sector" (2017) Downloads
Working Paper: Online Appendix to "Female Market Work, Tax Regimes, and the Rise of the Service Sector" (2017) Downloads
Working Paper: Female market work, tax regimes, and the rise of the service sector (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:issued:14-38

Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/

DOI: 10.1016/j.red.2017.09.002

Access Statistics for this article

Review of Economic Dynamics is currently edited by Loukas Karabarbounis

More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2022-11-02
Handle: RePEc:red:issued:14-38