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Chapitre D'ouvrage Année : 2007

Does taxation affect intra-household distribution? A Simulation Approach

Résumé

The literature on household behavior contains hardly any empirical research on the within-household distributional effect of tax-benefit policies. We simulate this effect in the framework of a collective model of labor supply when shifting from a joint to an individual taxation system in France. We show that the net-of-tax relative earning potential of the wife is a significant determinant of intrahousehold negotiation but with very low elasticity. Consequently, the labor supply responses to the reform are entirely driven by the traditional substitution and income effects as in a unitary model. For some households only, the reform alters the intrahousehold distribution in a way that tends to change normative conclusions. A sensitivity analysis shows that the collective model would be required if the tax reform was both radical and of extended scope.
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Dates et versions

hal-01691928 , version 1 (24-01-2018)

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  • HAL Id : hal-01691928 , version 1

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Nicolas Moreau, Olivier Bargain. Does taxation affect intra-household distribution? A Simulation Approach. Research on Economic Inequality, 2007. ⟨hal-01691928⟩
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