TY - JOUR
T1 - Taxing women
T2 - A macroeconomic analysis
AU - Guner, Nezih
AU - Kaygusuz, Remzi
AU - Ventura, Gustavo
N1 - Funding Information:
We thank editors Thomas Cooley and Yongsung Chang, our discussant Richard Rogerson, and participants at the 77th Meeting of the Carnegie-Rochester Conference on Public Policy at New York University for their detailed comments and suggestions. We also thank Loukas Karabarbounis, Tim Kehoe, Virginia Sanchez-Marcos and seminar and conference participants at Universitat Autonoma de Barcelona, State University Higher School of Economics (Moscow) and the 2011 Society for Economic Dynamics Annual Meetings in Gent. Guner acknowledges support from European Research Council (ERC) Grant 263600 . The usual disclaimer applies.
PY - 2012/1
Y1 - 2012/1
N2 - 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.
AB - 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.
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U2 - 10.1016/j.jmoneco.2011.10.004
DO - 10.1016/j.jmoneco.2011.10.004
M3 - Article
AN - SCOPUS:84856685493
VL - 59
SP - 111
EP - 128
JO - Carnegie-Rochester Confer. Series on Public Policy
JF - Carnegie-Rochester Confer. Series on Public Policy
SN - 0304-3932
IS - 1
ER -