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Marriage penalties, marriage, and cohabitation

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  • Fisher, Hayley

Abstract

I examine the effect of marriage penalties in the US income tax system on marital status. I construct a simulated instrument that exploits variation in the tax code over time and between US states to deal with potential endogeneity between the marriage penalty a couple faces and their marital status. I find that a $1000 increase in the marriage penalty faced reduces the probability of marriage by 1.7 percentage points, an effect four times larger than previously estimated. Those in the lowest education groups respond by as much as 2.7 percentage points, with the average response declining as education increases.

Suggested Citation

  • Fisher, Hayley, 2011. "Marriage penalties, marriage, and cohabitation," Working Papers 2011-12, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2123/7884
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    References listed on IDEAS

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    Cited by:

    1. Robert Cherry & Chun Wang, 2015. "Labor Market Conditions and US Teen Birth Rates, 2001–2009," Journal of Family and Economic Issues, Springer, vol. 36(3), pages 408-420, September.
    2. Stevenson, Adam, 2012. "The Labor Supply and Tax Revenue Consequences of Federal Same-Sex Marriage Legalization," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(4), pages 783-806, December.
    3. Fisher, Hayley, 2012. "Just a piece of paper? The effect of marriage on health," Working Papers 2012-17, University of Sydney, School of Economics.
    4. Klasing, Mariko J., 2013. "Cultural dimensions, collective values and their importance for institutions," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 447-467.
    5. Kant, Chander, 2016. "Are institutions in developing countries malleable?," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 272-289.

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    Keywords

    marriage; cohabitation; marriage penalty;
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