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

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  • Klara Kaliskova

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.

Suggested Citation

  • Klara Kaliskova, 2013. "Family Taxation and the Female Labor Supply: Evidence from the Czech Republic," CERGE-EI Working Papers wp496, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp496
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    References listed on IDEAS

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    Cited by:

    1. repec:spo:wpmain:info:hdl:2441/7lfmtcll678th9ldbi6o2t0onk is not listed on IDEAS
    2. Clément Carbonnier, 2014. "The influence of taxes on employment of married women, evidence from the French joint income tax system," Working Papers hal-03460526, HAL.
    3. repec:hal:spmain:info:hdl:2441/7lfmtcll678th9ldbi6o2t0onk is not listed on IDEAS

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    More about this item

    Keywords

    joint taxation; female labor supply; difference-in-differences;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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