Income taxation of couples, spouses' labor supplies and the gender wage gap
Helmuth Cremer () and
No 13159, CEPR Discussion Papers from C.E.P.R. Discussion Papers
We study the taxation of couples when female wages do not reflect their true productivity. We show that the expression for the marginal tax rates of the male spouses is the same as in a Mirrleesian world where wages reflect true productivities. Marginal taxes for the female spouses are reduced because of a Pigouvian correction. Consequently, the wage discrimination pleads for a lower marginal tax on the female spouse. Furthermore, the distortion of a couples' tradeoff between male and female labor supply is the same as in a Mirrleesian world without a gender wage gap. It only depends on true productivities and not on wages. In other words, the tax system completely neutralizes the extra distortion introduced by the wedge between the female spouse's wage and her true productivity.
Keywords: Couples' income taxation; gender wage gap; Household Labor Supply; optimal income taxation (search for similar items in EconPapers)
JEL-codes: D10 H21 H31 J16 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem, nep-gen, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at email@example.com
Journal Article: Income taxation of couples, spouses’ labor supplies and the gender wage gap (2019)
Working Paper: Income taxation of couples, spouses' labor supplies and the gender wage gap (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:13159
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=13159
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().