The impact of income taxation on the ratio between reservation and market wages and the incentives for labour supply
Marco Caliendo; Ludovica Gambaro; Peter Haan
This paper extends previous research about the determinants of reservation wages by analysing the effect of progressive income taxation on the ratio between reservation and net market wages. Based on micro data for Germany (SOEP) we show that joint income taxation in Germany which discriminates by marital status, has a strong and highly significant impact on the reservation/market wage ratio. Relative to single filers, this leads to strong negative labour supply incentives for secondary earners and to positive incentives for first earners in married couples.
Year of publication: |
Mar. 2007
|
---|---|
Other Persons: | Caliendo, Marco (contributor) ; Gambaro, Ludovica (contributor) ; Haan, Peter (contributor) |
Publisher: |
Berlin : DIW |
Subject: | Einkommensteuer | Income tax | Familienbesteuerung | Family taxation | Steuerwirkung | Tax effects | Anspruchslohn | Reservation wage | Arbeitsangebot | Labour supply | Anreiz | Incentives | Weibliche Arbeitskräfte | Women workers | Deutschland | Germany |
Saved in:
freely available
Extent: | Online-Ressource, 15 S., Text graph. Darst. |
---|---|
Series: | Discussion papers / Deutsches Institut für Wirtschaftsforschung. - Berlin : [Verlag nicht ermittelbar], ISSN 1619-4535, ZDB-ID 2125067-4. - Vol. 670 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
Language: | English |
Notes: | Systemvoraussetzungen: Acrobat Reader |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10003426356