Is the Collective Model of Labor Supply Useful for Tax Policy Analysis? : A Simulation Exercise

Arbeitspapier

The literature on household behavior contains hardly any empirical research on the withinhousehold distributional effect of tax-benefit policies. We simulate this effect in the framework of a collective model of labor supply when shifting from a joint to an individual taxation system in France. We show that the net-of-tax relative earning potential of the wife is a significant determinant of intrahousehold negotiation but with very low elasticity. Consequently, the labor supply responses to the reform are entirely driven by the traditional substitution and income effects as in a unitary model. For some households only, the reform alters the intrahousehold distribution in a way that tends to change normative conclusions. A sensitivity analysis shows that the collective model would be required if the tax reform was both radical and of extended scope.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 1451

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Fiscal Policies and Behavior of Economic Agents: Household ; Consumer Economics: Empirical Analysis ; Time Allocation and Labor Supply ; Consumer Economics: Theory ; Cooperative Games
• Thema: collective model ; intrahousehold allocation ; household labor supply ; tax reform ; Arbeitsangebot ; Haushaltsökonomik ; Familienökonomik ; Steuer ; Steuerreform ; Wirtschaftspolitische Wirkungsanalyse ; Theorie ; Frankreich

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bargain, Olivier ; Moreau, Nicolas
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/20750
• Letzte Aktualisierung: 09.03.2025, 01:43 MEZ