Optimal taxation, child care and models of the household
In: CESifo working paper series 4578
In: Public finance
Abstract
This paper presents the properties of optimal piecewise linear tax systems for two-earner households, based on joint and individual incomes respectively. A key contribution is the analysis of the interaction between second earner wage differences, variation in the price of child care and domestic productivity differences as determinants of across-household heterogeneity in second earner labour supply, and of the resulting relationship between household income and the wellbeing of household members. A central result is that taking account of a richer and more realistic specification of household time use widens the set of cases in which individual taxation is welfare-superior.
Verfügbarkeit
Sprachen
Englisch
Verlag
Univ., Center for Economic Studies
Seiten
35 S.
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