uu.seUppsala University Publications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Female labour supply in Germany: Do women married to high-earning men work less because they face higher participation tax rates?
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2019 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Female labour force participation in Germany only recently reached levels comparable to that of other industrialised countries in the European Union and in terms of women's volume of work the country still lags behind (European Comission, 2016). It seems reasonable to assume that incentives for women to actively participate in the labour market are lower because married couples continue to file their income tax jointly. Therefore, this study aims to answer the question whether women married to high-earning men work less because they face higher participation tax rates. Exploiting a rich panel data set provided by the German Institute for Economic Research (DIW), I analyse the evolution of female employment in the years surrounding the German Tax Act of 2000. Utilising this reform and the varying tax reductions it entailed as a quasi-experiment, I identify labour supply elasticities of married women with respect to their net wage rates. I find clear evidence that ceteris paribus highly endowed women worked less than those married to husbands with lower earnings in the years prior to the large tax reform. However, following the decreases in the progressivity of the German tax code in 2005, the gap in employment does not narrow accordingly. Therefore, no causal relationship between a woman's participation tax rate and her labour supply can be established.

Place, publisher, year, edition, pages
2019. , p. 77
Keywords [en]
Female labour supply, Income tax reforms, Joint taxation, Participation tax rates
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-389776OAI: oai:DiVA.org:uu-389776DiVA, id: diva2:1339109
Subject / course
Economics
Educational program
Master Programme in Economics
Supervisors
Examiners
Available from: 2019-08-06 Created: 2019-07-25 Last updated: 2019-08-06Bibliographically approved

Open Access in DiVA

No full text in DiVA

By organisation
Department of Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 196 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf