Female Labour Force Participation, Taxation and Intergenerational Spillovers

PhD Seminar
The Erasmus University, Rotterdam Campus
Speaker
Date
Wednesday 4 Oct 2023, 13:00 - 14:00
Type
Seminar
Room
1-20
Building
Polak Building
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The Erasmus University, Rotterdam Campus

Many governments strive to increase female labour force participation. Second earners often face higher marginal tax rates, which can harm female labour supply. Hence, reducing disincentives to work from existing tax policies may increase female labor supply.

However, this may also have spillover effects onto the labour supply of the next generation. In this paper, I exploit a reform in the Netherlands which abolished a tax subsidy for breadwinner families. I show that this reform increased labour supply of women directly affected.

However, daughters of these women reduce their labour supply and are more likely to have kids and be married. I do not find any effects on the labour supply or fertility of sons. I explore mechanisms that can explain this effect.

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