Tax Structure and Female Labour Supply: Evidence from Ireland

35 Pages Posted: 27 Apr 2009

See all articles by Tim Callan

Tim Callan

Economic and Social Research Institute, Ireland; IZA Institute of Labor Economics

Arthur van Soest

Tilburg University; Netspar; RAND Corporation; Institute for the Study of Labor (IZA)

John R. Walsh

Economic and Social Research Institute, Ireland

Abstract

How great an effect does the structure of income taxes have on female labour supply? This issue is investigated using a discrete-choice static labour supply model for married couples in Ireland. The model incorporates fixed costs of working and simultaneously explains participation decisions and preferred hours of work. The model is estimated using data from the 1994 wave of the Living in Ireland Survey. Simulations examine the labour supply effects of introducing greater independence in the tax treatment of married couples, compared with an income-splitting system, and alternative forms of tax cuts.

Suggested Citation

Callan, Tim and van Soest, Arthur H. O. and Walsh, John R., Tax Structure and Female Labour Supply: Evidence from Ireland. LABOUR, Vol. 23, Issue 1, pp. 1-35, March 2009, Available at SSRN: https://ssrn.com/abstract=1378381 or http://dx.doi.org/10.1111/j.1467-9914.2008.00444.x

Tim Callan (Contact Author)

Economic and Social Research Institute, Ireland ( email )

4 Burlington Road
Dublin 4
Republic of Ireland

IZA Institute of Labor Economics ( email )

Bonn, D-53072
Germany

Arthur H. O. van Soest

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

RAND Corporation ( email )

P.O. Box 2138
1776 Main Street
Santa Monica, CA 90407-2138
United States

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

John R. Walsh

Economic and Social Research Institute, Ireland ( email )

Dublin 4
Ireland

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