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Taxing Women: A Macroeconomic Analysis

Author

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  • Nezih Guner

    (ICREA-MOVE, Universitat Autonoma de Barcelona, Barcelona GSE)

Abstract

We build an equilibrium life-cycle model populated by heterogeneous single and married agents. Married households decide if both or only one members should work. Labor supply decisions of women capture central elements of reality; if a married female with children works, the household incurs resource, time and utility costs. We calibrate the model economy to the U.S. under the current tax system and then study the effects of a gender-based tax system that imposes different linear taxes on males and females. As a by-product, our analysis allows us to separate the effects of differential taxation by gender from the effects associated to the elimination or reduction of tax progressivity. Our questions are: what are the effects on aggregate output, labor supply, and welfare of taxing females at a lower rate than males? How large should be the gap in marginal tax rates for males and females?

Suggested Citation

  • Nezih Guner, 2011. "Taxing Women: A Macroeconomic Analysis," 2011 Meeting Papers 581, Society for Economic Dynamics.
    • Handle: RePEc:red:sed011:581
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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