Tax policy and returns to education

A. L. Booth*, M. G. Coles

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

This paper considers how asymmetric tax treatment, where labour market earnings are taxed but household production is untaxed, affects educational choice and labour supply. We show that taxes on labour market earnings can generate a large (non-marginal) switch to home production and the ensuing deadweight losses are large. Using a cross-country panel, we find that gender differences in labour supply responses to tax policy can explain differences in aggregate labour supply and years of education across countries.

Original languageEnglish
Pages (from-to)291-301
Number of pages11
JournalLabour Economics
Volume17
Issue number1
DOIs
Publication statusPublished - Jan 2010
Externally publishedYes

Fingerprint

Dive into the research topics of 'Tax policy and returns to education'. Together they form a unique fingerprint.

Cite this