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.
- Speaker
- Date
- Wednesday 4 Oct 2023, 13:00 - 14:00
- Type
- Seminar
- Room
- 1-20
- Building
- Polak Building
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.
