IDEAS home Printed from https://ideas.repec.org/p/hal/spmain/hal-03417077.html
   My bibliography  Save this paper

Evaluating the impact of the French tax credit on the employment rate of women

Author

Listed:
  • Elena Stancanelli

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, IZA - Institute for the Study of Labor - Institute for the Study of Labor)

Abstract

This paper investigates the employment impact of a new tax-credit programme that was put in place in France in 2001. According to the theoretical labour supply model, tax credits will have a positive effect on individual labour market participation as they increase the rewards from work. However, tax credits may discourage married women's participation mainly due to income effects. We analyse the introduction of the French measure by adopting a non-experimental evaluation method. Various treatment and control groups are defined. The first specification adopted relies on the policy eligibility rules for the construction of the control and treatment groups. The others hinge, respectively, on marital status, for women in couple-households, and on the presence of children, for single women. We find evidence of a negative employment effect for married women, with a reduction of about three percentage points in the employment rate after the introduction of the policy. In particular, it seems to be the conditioning on total household resources that discourages married women's labour market participation. On the contrary, the employment impact of the measure is positive for cohabiting women and twice as large. The policy effect is very small and statistically not significant for single women. The net impact of the introduction of the tax credit on the total employment of women is very marginal, amounting to the creation of about two thousand new jobs.

Suggested Citation

  • Elena Stancanelli, 2008. "Evaluating the impact of the French tax credit on the employment rate of women," SciencePo Working papers Main hal-03417077, HAL.
    • Handle: RePEc:hal:spmain:hal-03417077
    DOI: 10.1016/j.jpubeco.2008.02.007
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ai-Thu Dang & Jean-Marie Monnier, 2011. "Gender Regimes and Welfare States in France: A historical perspective," Working Papers hal-04140939, HAL.
    2. Karine Briard, 2020. "L’élasticité de l’offre de travail des femmes en France. Petite revue de méthodes et de résultats," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(5), pages 39-72.
    3. Antoine de Mahieu, 2021. "In-work Benefits in Belgium: Effects on Labour Supply and Welfare," International Journal of Microsimulation, International Microsimulation Association, vol. 14(1), pages 43-72.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:spmain:hal-03417077. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Contact - Sciences Po Departement of Economics (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.