Wives’ Labor Supply and Taxation: a Conditional Preferences Approach

Christophe Kolodziejczyk

No 2005-02, CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics

Abstract: In the context of the unitary model of household labour supply we test whether the husband’s work is separable from consumption and the wife’s work. We apply a conditional preferences approach to derive a conditional labor supply function for the wife consistent with a unitary model with nonseparable preferences. Our main results are that consumption and wife’s work hours are not separable from the husband’s labour supply. Furthermore we find that the wife’s and husband’s work hours are complements when men tend to work longer hours than a typical full-time contract.

Keywords: conditional preferences; non-separability; income taxation; married women labor supply (search for similar items in EconPapers)
JEL-codes: D13 H24 H31 J22 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005-04
New Economics Papers: this item is included in nep-dcm and nep-lab
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