Arbeitspapier
Collective Labour Supply, Taxes, and Intrahousehold Allocation: An Empirical Approach
Most empirical studies of the impact of labour income taxation on the labour supply behaviour of households use a unitary modelling approach. In this paper we empirically analyze income taxation and the choice of working hours by combining the collective approach for household behaviour and the discrete hours choice framework with fixed costs of work. We identify the sharing rule parameters with data on working hours of both the husband and the wife within a couple. Parameter estimates are used to evaluate various model outcomes, like the wage elasticities of labour supply and the impacts of wage changes on the intrahousehold allocation of income. We also simulate the consequences of a policy change in the tax system. We find that the collective model has different empirical outcomes of income sharing than a restricted model that imposes income pooling. In particular, a specification with income pooling fails to capture asymmetries in the income sharing across spouses. These differences in outcomes have consequences for the evaluation of policy changes in the tax system and shed light on the effectiveness of certain policies.
- Language
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Englisch
- Bibliographic citation
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Series: Tinbergen Institute Discussion Paper ; No. 15-121/V
- Classification
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Wirtschaft
Model Construction and Estimation
Household Production and Intrahousehold Allocation
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Time Allocation and Labor Supply
- Subject
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Labour supply
Household behaviour and Family Economics
Intrahousehold allocation
Taxation
Model construction and estimation
- Event
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Geistige Schöpfung
- (who)
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Bloemen, Hans
- Event
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Veröffentlichung
- (who)
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Tinbergen Institute
- (where)
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Amsterdam and Rotterdam
- (when)
-
2015
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bloemen, Hans
- Tinbergen Institute
Time of origin
- 2015
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Intrahousehold Resource Allocation and Individual Poverty: Assessing Collective Model Predictions against Direct Evidence on Sharing
Intra-household resource allocation and familial ties
Efficient intra-household allocation of parental leave
Intra-Household Resource Allocation: An Inferential Approach
Efficient Intra-Household Allocation of Parental Leave
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Intra-household allocation of non-mandatory retirement savings
The changing intra-household resource allocation in Russia
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