%0 Report
        %A Apps, Patricia
%A Rees, Ray
        %T Optimal Taxation, Child Care and Models of the Household
        %D 2012
        %8 2012 Aug
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 6823
        %U https://www.iza.org/index.php/publications/dp6823
        %X 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.
        %K household production
%K time allocation
%K optimal taxation
%K child care
%K inequality
%K labour supply