@TechReport{iza:izadps:dp6823,
            	author={Apps, Patricia and Rees, Ray},
            	title={Optimal Taxation, Child Care and Models of the Household},
            	year={2012},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={6823},
            	url={https://www.iza.org/index.php/publications/dp6823},
	abstract={This paper presents for the first time the properties of optimal piecewise linear tax systems for two-earner households, based on joint and individual incomes respectively. A key contribution is the analysis of the interaction of second earner wage differences, variation in prices of bought-in inputs into household production in the form of child care, and domestic productivity differences as determinants of across-household heterogeneity in second earner labour supply. The analysis highlights the importance of the elasticity of substitution between parental and non-parental child care in determining the relationship between utility and income across households. A central result is that taking account of a richer and more realistic specification of household time use widens the set of cases in which individual taxation is welfare-superior to joint taxation.},
	keywords={household production;time allocation;optimal taxation;child care;inequality;labour supply},
            }