Tax incentives and family labor supply in Austria

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• 作者：Tibor Paul Hanappi ; Sandra Müllbacher
• 关键词：Labor supply ; Discrete choice ; Income taxation ; Family policy
• 刊名：Review of Economics of the Household
• 出版年：2016
• 出版时间：December 2016
• 年：2016
• 卷：14
• 期：4
• 页码：961-987
• 全文大小：534 KB
• 刊物类别：Business and Economics
• 刊物主题：Economics
  Microeconomics
  Labor Economics
  Population Economics
  Social Sciences
  
• 出版者：Springer Netherlands
• ISSN：1573-7152
• 卷排序：14

文摘

The family policy reform 2009 introduced tax deductibles for children and child care expenditures in Austria. In this paper we evaluate this reform based on a structural labor supply model with unitary households which has been estimated on the European Statistics on Income and Living Conditions cross-sections 2004–2008. We find that the reform had only small employment effects, most of them being generated through the introduction of a child care deductible. However, to illustrate the employment potential of a shift from universal child transfers to tax deductibles we propose additional simulations showing that such a policy shift would yield an increase in full time equivalents of approximately .70 % of overall employment, with married females increasing their labor supply by up to 1.5 %. While the proposed policy shifts have regressive effects in terms of their distributional impact, we show that phasing-out the tax deductible at higher income allows for the compensation of lower-income households without jeopardizing positive employment effects.