Garstenauer, Viola; Siassi, Nawid - 2024
married mothers. We develop a life-cycle model where married couples face labor market, child care and fertility risk, and … participation tax rates exceed 25 percent for most mothers in our sample, and can be as high as 60 percent when including child care … expenses. We then evaluate reforms to existing tax credits for working couples. We find that (i) expanding child care tax …