Gender Bias in Tax Systems Based on Household Income

Annals of Economics and Statistics, Vol. 117-118, pp. 141-155, 2015

Sydney Law School Research Paper No. 14/104

17 Pages Posted: 29 Nov 2014 Last revised: 17 Aug 2015

See all articles by Yuri Andrienko

Yuri Andrienko

The University of Sydney

Patricia F. Apps

The University of Sydney Law School; IZA Institute of Labor Economics

Ray Rees

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics; CESifo (Center for Economic Studies and Ifo Institute); University of Sydney Law School

Multiple version iconThere are 2 versions of this paper

Date Written: December 8, 2014

Abstract

The assumption that household income is strongly and positively correlated with a household's real standard of living provides the basis for the joint taxation of families, which has the effect of discriminating against married women as second earners. This paper shows, in the context of a model of the household with young children present, that this assumption is not tenable. The fact that there is considerable heterogeneity in female labour supply which cannot be explained by wage rates and the number and ages of children requires us to look for other explanations, and we argue that these can be found in the variation of child care costs and productivities across households. When these are taken into account, we show, by theoretical modelling and numerical simulations based on survey data, that household income is a poor indicator of household well-being.

Keywords: Gender, discrimination, household taxation, child care, female labour supply, household production, inequality

JEL Classification: H24, H31, J13, J16, J22, D13, K10, K30, K34

Suggested Citation

Andrienko, Yuri and Apps, Patricia F. and Rees, Ray, Gender Bias in Tax Systems Based on Household Income (December 8, 2014). Annals of Economics and Statistics, Vol. 117-118, pp. 141-155, 2015, Sydney Law School Research Paper No. 14/104, Available at SSRN: https://ssrn.com/abstract=2531536 or http://dx.doi.org/10.2139/ssrn.2531536

Yuri Andrienko

The University of Sydney ( email )

Patricia F. Apps (Contact Author)

The University of Sydney Law School ( email )

Faculty of Law, New Law Building F10
The University of Sydney
Sydney, NSW 2006
Australia
+61 2 9351 0241 (Phone)
+61 2 9351 0200 (Fax)

IZA Institute of Labor Economics

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

Ray Rees

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics ( email )

Munich, D-80539
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

University of Sydney Law School ( email )

Sydney
Australia

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