Family Taxation and the Female Labor Supply: Evidence from the Czech Republic

CERGE-EI Working Paper Series No. 496

38 Pages Posted: 23 Nov 2013

See all articles by Klára Kalíšková

Klára Kalíšková

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Date Written: November 1, 2013

Abstract

Married couples file joint tax returns in many European countries. Nevertheless, research quantifying the effect of joint taxation on the work incentives of secondary earners is scarce thanks to a lack of recent policy changes. This study makes use of the introduction of joint taxation in the Czech Republic in 2005 to estimate its effect on married women’s labor supply. Results based on difference-in-differences and on triple differences with several alternative control groups suggest that the introduction of joint taxation lead to a decline of about 3 percentage points in the employment rate of married women with children. Participation declines are twice as large when the tax work disincentives are highest – among women with high-income husbands.

Keywords: joint taxation, female labor supply, difference-in-differences

JEL Classification: J21, H24

Suggested Citation

Kalíšková, Klára, Family Taxation and the Female Labor Supply: Evidence from the Czech Republic (November 1, 2013). CERGE-EI Working Paper Series No. 496, Available at SSRN: https://ssrn.com/abstract=2358474 or http://dx.doi.org/10.2139/ssrn.2358474

Klára Kalíšková (Contact Author)

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

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