The influence of taxes on employment of married women, evidence from the French joint income tax system

Clément Carbonnier (1, 2, 3)

1 THEMA - Théorie économique, modélisation et applications
2 Centre de recherche de la Banque de France
3 UCP - Université de Cergy Pontoise

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.

Mots clés: labour market; gender; tax system

Domaines: Economies et finances; Science politique

Clément Carbonnier. The influence of taxes on employment of married women, evidence from the French joint income tax system. 2014. ⟨hal-03460526⟩