Journal article
DECLINING FEMALE LABOR SUPPLY ELASTICITIES IN THE UNITED STATES AND IMPLICATIONS FOR TAX POLICY: EVIDENCE FROM PANEL DATA
National tax journal, Vol.69(3), pp.481-516
09/01/2016
DOI: 10.17310/ntj.2016.3.01
Abstract
Recent work has provided compelling evidence of a long-term decline in U.S. female labor supply elasticities with respect to wages and income. While previous work used cross-sectional data from the Current Population Survey (CPS), we reexamine the trend for married women using panel data from the Panel Study of Income Dynamics (PSID) from 1980 to 2006. We find evidence in support of a long-term decline in married females 'labor supply elasticities on the participation margin but less evidence in support of such a decline on the hours margin. We also investigate the implications of these results for the welfare effects of tax reforms. Policy simulations indicate that shrinking elasticities, mostly concentrated on the participation margin, have contributed to a dramatic decline in the welfare gains from actual and potential tax reforms since the 1980s.
Details
- Title: Subtitle
- DECLINING FEMALE LABOR SUPPLY ELASTICITIES IN THE UNITED STATES AND IMPLICATIONS FOR TAX POLICY: EVIDENCE FROM PANEL DATA
- Creators
- Anil Kumar - Fed Reserve Bank Dallas, Res Dept, Dallas, TX 75201 USAChe-Yuan Liang - Uppsala University
- Resource Type
- Journal article
- Publication Details
- National tax journal, Vol.69(3), pp.481-516
- Publisher
- Natl Tax Assoc
- DOI
- 10.17310/ntj.2016.3.01
- ISSN
- 0028-0283
- eISSN
- 1944-7477
- Number of pages
- 36
- Language
- English
- Date published
- 09/01/2016
- Academic Unit
- Economics
- Record Identifier
- 9984618507202771
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