Income taxation, labour supply and housework: a discrete choice model for French couples

Jan Kabátek, Arthur van Soest () and Elena Stancanelli ()
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Elena Stancanelli: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Earlier studies suggest that income taxation may affect not only labour supply but also domestic work. Here we investigate the impact of income taxation on partners' labour supply and housework, using data for France that taxes incomes of married couples jointly. We estimate a household utility model in which the marginal utilities of leisure and housework of both partners are modelled as random coefficients, depending on observed and unobserved characteristics. We conclude that both partners' market and housework hours are responsive to changes in the tax system. A policy simulation suggests that replacing joint taxation of married spouses' incomes with separate taxation would increase the husband's housework hours by 1.3% and reduce his labour supply by 0.8%. The wife's market hours would increase by 3.7%, and her housework hours would fall by 2.0%.

Keywords: Time use; Taxation; Discrete choice models (search for similar items in EconPapers)
Date: 2014-04
New Economics Papers: this item is included in nep-dcm and nep-lab
Note: View the original document on HAL open archive server: https://hal.science/hal-00966801v1
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Published in Labour Economics, 2014, 27, pp.30-43. ⟨10.1016/j.labeco.2014.01.004⟩

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Journal Article: Income taxation, labour supply and housework: A discrete choice model for French couples (2014)
Working Paper: Income taxation, labour supply and housework: a discrete choice model for French couples (2014)
Working Paper: Income taxation, labour supply and housework: a discrete choice model for French couples (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00966801

DOI: 10.1016/j.labeco.2014.01.004

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