Analyzing female labor supply -- Evidence from a Dutch tax reform
Nicole Bosch
Bas van der KlaauwJune 2009
Abstract
Among OECD countries, the Netherlands has average female
labor force participation, but by far the highest rate of part-time
work. This paper investigates the extent to which married women
respond to financial incentives. We exploit the exogenous variation
caused by a substantial Dutch tax reform in 2001. Our main
conclusion is that the positive significant effect of tax reform on
labor force participation dominates the negative insignificant
effect on working hours. Our preferred explanation is that women
respond more to changes in tax allowances than to changes in
marginal tax rates.
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Last updated: June 15, 2009.