Moving from joint to single taxation of married couples? The effect on labour supply of married women
The joint or family-based taxation of income for married couples has arguably discouraged the labour supply of married women. Norwegian government changed the tax treatment of married couples in 2018, from a system in which a married couple is taxed as a unit (“tax class 2”) to a system in which eac...
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2022
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Online Access: | http://hdl.handle.net/10852/100637 |
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ftoslouniv:oai:www.duo.uio.no:10852/100637 2023-05-15T16:13:34+02:00 Moving from joint to single taxation of married couples? The effect on labour supply of married women Sipayung, Dessy Natalia 2022 http://hdl.handle.net/10852/100637 nob nob Sipayung, Dessy Natalia. Moving from joint to single taxation of married couples? The effect on labour supply of married women. Master thesis, University of Oslo, 2022 http://hdl.handle.net/10852/100637 Difference-in-Differences Extensive and Intensive Margin Labour supply of women Master thesis Masteroppgave 2022 ftoslouniv 2023-03-08T23:36:40Z The joint or family-based taxation of income for married couples has arguably discouraged the labour supply of married women. Norwegian government changed the tax treatment of married couples in 2018, from a system in which a married couple is taxed as a unit (“tax class 2”) to a system in which each spouse paid taxes on his or her income (“tax class 1”). Before 2018, if the wife starts working, the household would lose the additional allowance for being taxed jointly. It triggered a high participation tax rate for married women and may have discouraged working participation. In this thesis, I study the disincentive effects for married women in Finnmark and Troms after the additional north-tax allowance for tax class 2 was abolished in 2014. I applied a difference-in-differences research design for the study, using married women in all other regions in Norway as a comparison group. The study reveals that abolishing the additional north-tax allowance for tax class 2 substantially reduced the participation tax rate for women in Finnmark and Troms, thus increasing the incentives to work. However, the result from the empirical approach finds no significant evidence that married women in Finnmark and Troms have increased their labour market participation due to the tax schedule change in 2014. Master Thesis Finnmark Finnmark Troms Universitet i Oslo: Digitale utgivelser ved UiO (DUO) Norway |
institution |
Open Polar |
collection |
Universitet i Oslo: Digitale utgivelser ved UiO (DUO) |
op_collection_id |
ftoslouniv |
language |
Norwegian Bokmål |
topic |
Difference-in-Differences Extensive and Intensive Margin Labour supply of women |
spellingShingle |
Difference-in-Differences Extensive and Intensive Margin Labour supply of women Sipayung, Dessy Natalia Moving from joint to single taxation of married couples? The effect on labour supply of married women |
topic_facet |
Difference-in-Differences Extensive and Intensive Margin Labour supply of women |
description |
The joint or family-based taxation of income for married couples has arguably discouraged the labour supply of married women. Norwegian government changed the tax treatment of married couples in 2018, from a system in which a married couple is taxed as a unit (“tax class 2”) to a system in which each spouse paid taxes on his or her income (“tax class 1”). Before 2018, if the wife starts working, the household would lose the additional allowance for being taxed jointly. It triggered a high participation tax rate for married women and may have discouraged working participation. In this thesis, I study the disincentive effects for married women in Finnmark and Troms after the additional north-tax allowance for tax class 2 was abolished in 2014. I applied a difference-in-differences research design for the study, using married women in all other regions in Norway as a comparison group. The study reveals that abolishing the additional north-tax allowance for tax class 2 substantially reduced the participation tax rate for women in Finnmark and Troms, thus increasing the incentives to work. However, the result from the empirical approach finds no significant evidence that married women in Finnmark and Troms have increased their labour market participation due to the tax schedule change in 2014. |
format |
Master Thesis |
author |
Sipayung, Dessy Natalia |
author_facet |
Sipayung, Dessy Natalia |
author_sort |
Sipayung, Dessy Natalia |
title |
Moving from joint to single taxation of married couples? The effect on labour supply of married women |
title_short |
Moving from joint to single taxation of married couples? The effect on labour supply of married women |
title_full |
Moving from joint to single taxation of married couples? The effect on labour supply of married women |
title_fullStr |
Moving from joint to single taxation of married couples? The effect on labour supply of married women |
title_full_unstemmed |
Moving from joint to single taxation of married couples? The effect on labour supply of married women |
title_sort |
moving from joint to single taxation of married couples? the effect on labour supply of married women |
publishDate |
2022 |
url |
http://hdl.handle.net/10852/100637 |
geographic |
Norway |
geographic_facet |
Norway |
genre |
Finnmark Finnmark Troms |
genre_facet |
Finnmark Finnmark Troms |
op_relation |
Sipayung, Dessy Natalia. Moving from joint to single taxation of married couples? The effect on labour supply of married women. Master thesis, University of Oslo, 2022 http://hdl.handle.net/10852/100637 |
_version_ |
1765999338535780352 |