Family Labour Supply and Taxes in Ireland
Tim Callan () and
Arthur van Soest ()
No WP078, Papers from Economic and Social Research Institute (ESRI)
We analyse the labour supply of husband and wife in Irish families. A static structural model used. Account is taken of nonlinearities and non-convexities in tax-benefit system, of fixed costs of working, of unobserved preference variation across families, of prediction errors in wages of non-workers and of potential endogeneity of gross wage rates. Moreover the neoclassical model is extended such that information on involuntary unemployment is incorporated in a structural way. Smooth simulated maximum likelihood is used to estimate the model, using household data from 1997. The Irish tax system is characterized by ?income splitting? so that the tax liability of the couple depends essentially on the joint income of husband and wife. We analyse the sensitivity of husbands? and wives? labour supply with respect to the own wage, the partner's wage, and other income. We compare labour supply under the actual tax regime and under alternatives involving more independent taxation, and analyse the extent to which the tax system can explain the low participation of married women in Ireland.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34) Track citations by RSS feed
Downloads: (external link)
http://www.esri.ie/pubs/WP078.pdf First version, 1996
Working Paper: Family labour supply and taxes in Ireland (1994)
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:esr:wpaper:wp078
Access Statistics for this paper
More papers in Papers from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Burns ().