Family Tax Splitting: A Microsimulation of its Potential Labour Supply and Intra-household Welfare Effects in Germany

Francois Laisney, Denis Beninger and Miriam Beblo

No 03-32, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper assesses the effects that an introduction of the French family splitting mechanism would have on German families' labour supply and intra-household consumption behaviour. We use simulated real world microdata created by means of a 'deterministic' collective labour supply model. The data are generated by a compound procedure of estimation and calibration based on GSOEP data. In a microsimulation the present tax-benefit system with child benefit/allowance is replaced by a tax scheme with family splitting. The resulting changes in labour supply are surprisingly small, even for women. Welfare effects are also modest, but differ for husbands and wives.

Keywords: Collective model; household labour supply; intra-household allocation; tax reform; family splitting (search for similar items in EconPapers)
JEL-codes: D11 D12 D13 D31 J12 J22 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (32)

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Related works:
Working Paper: Family Tax Splitting: A Microsimulation of Its Potential Labour Supply and Intra-household Welfare Effects in Germany (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:1342

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