TY  - RPRT
        AU  - Bargain, Olivier B.
AU  - Moreau, Nicolas
        TI  - Is the Collective Model of Labor Supply Useful for Tax Policy Analysis? A Simulation Exercise
        PY  - 2005/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1451
        UR  - https://www.iza.org/index.php/publications/dp1451
        AB  - The literature on household behavior contains hardly any empirical research on the within-household distributional effect of tax-benefit policies. We simulate this effect in the framework of a collective model of labor supply when shifting from a joint to an individual taxation system in France. We show that the net-of-tax relative earning potential of the wife is a significant determinant of intrahousehold negotiation but with very low elasticity. Consequently, the labor supply responses to the reform are entirely driven by the traditional substitution and income effects as in a unitary model. For some households only, the reform alters the intrahousehold distribution in a way that tends to change normative conclusions. A sensitivity analysis shows that the collective model would be required if the tax reform was both radical and of extended scope.
        KW  - household labor supply
KW  - intrahousehold allocation
KW  - collective model
KW  - tax reform
        ER  -