Type
Working paper
Title
The influence of taxes on employment of married women, evidence from the French joint income tax system
In
LIEPP Working Paper
Author(s)
CARBONNIER Clément - Université de Cergy Pontoise (Author)
Editor
Paris : Laboratory for Interdisciplinary Evaluation of Public Policies
Collection
LIEPP Working Paper : 23
Keywords
labour market, gender, tax system
Abstract
FR
This article estimates the elasticity of participation in the workforce of married women with respect to the rate of income tax. We take advantage of the French joint income tax system and a large tax returns data base to implement a regression discontinuity design. The negative impact of tax rates on participation is generally strong. This elasticity describes a U-curve along the distribution of income per consumption unit. Participation is more elastic at the lower end of the income distribution. Participation elasticity increases with the wife's age and the age difference between the spouses. It is even greater when the husband is retired. An increase of this elasticity occurs after the third child and subsequent but not for the two first children. When these two first children are young, the elasticity of their mother is even lower.

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