Tax and Transfer Policies and the Female Labor Supply in the EU

Page 1

2013–2014

ERSTE Foundation Fellowship for Social Research Labour Market and Employment in Central and Eastern Europe

Tax and Transfer Policies and the Female Labor Supply in the EU Klára Kalíšková


∗ † ‡

† ‡



g c

t g c

t





epw ew = epw

ew = 0

u = ew − T (ew , ρ) − qw × 1(ew > 0) qw ew > 0 T (ew , ρ) ρ ew = epw

ew = 0

ew


qw ≤ epw − [T (epw , ρ) − T (0, ρ)].

u = em + ew − T (em , ew , ρ) − qm × 1(em > 0) − qw × 1(ew > 0), em

ew

qm

T (.) ew = epw

ew = 0

qw


qw ≤ epw − [T (em , epw , ρ) − T (em , 0, ρ)].

PTR ≡

[T (em , epw , ρ) − T (em , 0, ρ)] epw − qw ≤ epw epw

em

"w ≡ Empl

∂Empl [ew (1 − P T R)] , ∂[ew (1 − P T R)] Empl


Emplict = αP T Rict + β ! Xict + γt + γc + (γct ) + "ict , Emplict

P T Rict

Xict

γc

γt γct

j = 1, ..., J


P T Rjct c

j

t

g t

c

P T Rjct g

P T Rict = λP T R IVict + θ! Xict + γt + γc + (γct ) + uict , Emplict = δ P! T Rict + φ! Xict + γt + γc + (γct ) + eict , P T R IVict

P T Rjct

c

P! T Rict

c

t


δ







Participation tax rate

0 .4 .8

0 .4 .8

0 .4 .8

0 .4 .8

EE

1 2 3 4 5 6 7 8 9 10

IE

1 2 3 4 5 6 7 8 9 10

PL

1 2 3 4 5 6 7 8 9 10

UK

DK

1 2 3 4 5 6 7 8 9 10

HU

1 2 3 4 5 6 7 8 9 10

NL

1 2 3 4 5 6 7 8 9 10

SK

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

BE

AT

Graphs by country

0 .4 .8

1 2 3 4 5 6 7 8 9 10

RO

1 2 3 4 5 6 7 8 9 10

LT

1 2 3 4 5 6 7 8 9 10

FI

1 2 3 4 5 6 7 8 9 10

CY

Income decile

1 2 3 4 5 6 7 8 9 10

PT

1 2 3 4 5 6 7 8 9 10

IT

1 2 3 4 5 6 7 8 9 10

ES

1 2 3 4 5 6 7 8 9 10

BG

1 2 3 4 5 6 7 8 9 10

SE

1 2 3 4 5 6 7 8 9 10

LU

1 2 3 4 5 6 7 8 9 10

FR

1 2 3 4 5 6 7 8 9 10

CZ

1 2 3 4 5 6 7 8 9 10

SI

1 2 3 4 5 6 7 8 9 10

LV

1 2 3 4 5 6 7 8 9 10

GR

1 2 3 4 5 6 7 8 9 10

DE


IV for participation tax rate

.8

.4

0

.8

.4

0

.8

.4

0

.8

.4

0

.8

.4

EE

1 2 3 4 5 6 7 8 9 10

IE

1 2 3 4 5 6 7 8 9 10

PL

1 2 3 4 5 6 7 8 9 10

UK

DK

1 2 3 4 5 6 7 8 9 10

HU

1 2 3 4 5 6 7 8 9 10

NL

1 2 3 4 5 6 7 8 9 10

SK

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

BE

AT

Graphs by country

0

1 2 3 4 5 6 7 8 9 10

RO

1 2 3 4 5 6 7 8 9 10

LT

1 2 3 4 5 6 7 8 9 10

FI

1 2 3 4 5 6 7 8 9 10

CY

Income decile

1 2 3 4 5 6 7 8 9 10

PT

1 2 3 4 5 6 7 8 9 10

IT

1 2 3 4 5 6 7 8 9 10

ES

1 2 3 4 5 6 7 8 9 10

BG

1 2 3 4 5 6 7 8 9 10

SE

1 2 3 4 5 6 7 8 9 10

LU

1 2 3 4 5 6 7 8 9 10

FR

1 2 3 4 5 6 7 8 9 10

CZ

1 2 3 4 5 6 7 8 9 10

SI

1 2 3 4 5 6 7 8 9 10

LV

1 2 3 4 5 6 7 8 9 10

GR

1 2 3 4 5 6 7 8 9 10

DE



R2


R2

<

<

<


R2 < <

<


R2 < <

<



R2 < <

<










R2

R2 < <

<


R2

R2 < <

<


R2 < <

<


Density

0 2 4 6 8

0 2 4 6 8

6

4

2

0

6

4

2

0

10

5

0

0

0

0

0

.5

SK, 2007

.5

NL, 2007

.5

HU, 2007

.5

DK, 2007

.5

AT, 2007

1

1

1

1

1

0

0

0

0

0

.5

UK, 2007

.5

PL, 2007

.5

IE, 2007

.5

EE, 2007

.5

BE, 2007

Graphs by country and year

0

0 2 4 6 8 10 5 0 0 1 2 3 4 10 15 5 0 0 2 4 6 8

1

1

1

1

1

6 4 2 0 10 5 0 10 5 0 0 2 4 6 8 0

0

0

0

1

1

1

1

0

0

0

0

.5

RO, 2007

.5

LT, 2007

.5

FI, 2007

.5

CY, 2007

Participation tax rate

.5

PT, 2007

.5

IT, 2007

.5

ES, 2007

.5

BG, 2007 10 20 30 0 0 2 4 6 8 0 5 10 15 20

1

1

1

1

5 0

10 15

0 2 4 6 8 0 2 4 6 8 0 1 2 3 4 10 15 5 0 0

0

0

0

.5

SE, 2007

.5

LU, 2007

.5

FR, 2007

.5

CZ, 2007

1

1

1

1

6 4 2 0 10 15 5 0 0 5 10 15 20 10 5 0 0

0

0

0

.5

SI, 2007

.5

LV, 2007

.5

GR, 2007

.5

DE, 2007

1

1

1

1


Density

0 2 4 6 8

10

5

0

10

5

0

10 15

5

0

10

5

0

0

0

0

0

.5

SK, 2007

.5

NL, 2007

.5

HU, 2007

.5

DK, 2007

.5

AT, 2007

1

1

1

1

1

0

0

0

0

0

.5

UK, 2007

.5

PL, 2007

.5

IE, 2007

.5

EE, 2007

.5

BE, 2007

Graphs by country and year

0

10 15 5 0 0 5 10 15 20 10 15 5 0 10 15 5 0 10 15 5 0

1

1

1

1

1

10 15 5 0 10 5 0 0 10 20 30 40 0

0

0

0

.5

PT, 2007

.5

IT, 2007

.5

ES, 2007

.5

BG, 2007

1

1

1

1

0

0

0

0

.5

RO, 2007

.5

LT, 2007

.5

FI, 2007

.5

CY, 2007

1

1

1

1

IV for participation tax rate

0 2 4 6 8

0 5 10 15 20 10 20 30 0 10 20 30 0 10 20 30 0

0 5 10 15 20 10 5 0 6 4 2 0 10 5 0 0

0

0

0

.5

SE, 2007

.5

LU, 2007

.5

FR, 2007

.5

CZ, 2007

1

1

1

1

10 5 0 0 10 20 30 40 10 20 30 0 0 5 10 15 20 0

0

0

0

.5

SI, 2007

.5

LV, 2007

.5

GR, 2007

.5

DE, 2007

1

1

1

1


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