Taxes and household labor supply: Estimating distributional effects of nonlinear prices on multidimensional choice

Arbeitspapier

We develop a method for distributional regression of joint multidimensional choice on nonlinear prices departing from a household model of labor supply that focuses on tax policy effects. Our distribution functions are derived under minimal theoretical assumptions and have a simple structure. We allow distribution-free estimation, collective decisionmaking, and identification based on tax reforms. In our empirical application on U.S. panel data from 1980 to 2006, we provide a deepened understanding of how the configuration of the tax system affects the distribution of transitions between combinations of spouse labor supply. We also quantify biases from commonly imposed restrictions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2018:2

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Theory ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Time Allocation and Labor Supply
• Subject: household labor supply ; nonlinear budget sets ; distributional regression ; collective choice ; distribution-free estimation ; tax reforms

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Liang, Che-Yuan
• Event: Veröffentlichung
• (who): Uppsala University, Department of Economics
• (where): Uppsala
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/197654
• URN: urn:nbn:se:uu:diva-342481
• Last update: 10.03.2025, 11:42 AM CET