Income Taxation and Labor Supply: An Experiment on Couple's Work Effort

Konferenzbeitrag

Complementary to microsimulation studies focusing on the impact of labor supply as a choice of hours worked we shed light on another variable that survey data are not capable of taking into account: the choice of work e ffort. Our aim is to investigate the eff ect of individual and joint taxation on partners' labor supply within an experimental setting. 116 participants (58 real couples) perform under a piece rate compensation on real e ffort tasks in two stages. The couple's income is taxed jointly for one stage and individually for the other. Surprisingly, our data reveal that men, when being in the position of a secondary earner, are more susceptible to changes in tax scheme while women do not react to a change in tax scheme at all. Besides the male breadwinner model we also demonstrate that fairness considerations play a role.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Tax Evasion and Labor Supply ; No. C06-V3

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policies and Behavior of Economic Agents: Household ; Field Experiments ; Time Allocation and Labor Supply

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schröder, Melanie ; Schmitt, Norma ; Heynemann, Britta ; Brünn, Claudia
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/79735
• Last update: 10.03.2025, 11:42 AM CET