A Program for Research on Social and Economic Dimensions of an Aging Population Joint Taxation and the Labour Supply of Married Women: Evidence from the Canadian Tax Reform of 1988 Thomas F. Crossley
نویسندگان
چکیده
The Canadian federal tax reform of 1988 replaced a spousal tax exemption with a non-refundable tax credit. This reduced the “jointness” of the tax system: after the reform, secondary earners’ effective “first dollar” marginal tax rates no longer depended on the marginal tax rates of their spouses. In practice, the effective “first dollar” marginal tax rates faced by women with high income husbands were particularly reduced. Using difference-in-difference estimators, we find a significant increase in labour force participation among women married to higher income husbands. JEL classifications: J22, H24
منابع مشابه
A Program for Research on Social and Economic Dimensions of an Aging Population
Identifying the effect of differential taxation on portfolio allocation requires exogenous variation in marginal tax rates. Marginal tax rates vary with income, but income surely affects portfolio choice directly. In systems of individual taxation – like Canada’s – couples with the same household income can face different effective tax rates on capital income when labor income is distributed di...
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