Taxing women: A macroeconomic analysis

Nezih Guner, Remzi Kaygusuz, Gustavo Ventura

Research output: Contribution to journalArticle

24 Scopus citations

Abstract

Based on well-known evidence on labor supply elasticities, several authors have concluded that women should be taxed at lower rates than men. We evaluate the quantitative implications and merits of this proposition. Relative to the current system of taxation, setting a proportional tax rate on married females equal to 4% (8%) increases output and married female labor force participation by about 3.9% (3.4%) and 6.9% (4.0%), respectively. Gender-based taxes improve welfare and are preferred by a majority of households. Nevertheless, welfare gains are higher when the U.S. tax system is replaced by a proportional, gender-neutral income tax.

Original languageEnglish (US)
Pages (from-to)111-128
Number of pages18
JournalJournal of Monetary Economics
Volume59
Issue number1
DOIs
StatePublished - Jan 1 2012

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ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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