TY  - RPRT
        AU  - Kaliskova, Klara
        TI  - Tax and Transfer Policies and the Female Labor Supply in the EU
        PY  - 2015/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8949
        UR  - https://www.iza.org/publications/dp8949
        AB  - This study contributes to the female labor supply responsiveness literature by measuring the effect of tax-benefit policies on female labor supply based on a broad sample of 26 European countries in 2005-2010. The tax-benefit microsimulation model EUROMOD is used to calculate a measure of work incentives at the extensive margin – the participation tax rate, which is then used as the main explanatory variable in a female employment equation. This allows me to deal with the endogeneity of income in a new way by using a simulated instrumental variable based on a fixed EU-wide sample of women. Results suggest that a 10 percentage point increase in the participation tax rate decreases the female employment probability by 2 percentage points. The effect is higher for single mothers, for women in the middle of the skills distribution, and in countries that have lower rates of female employment.
        KW  - instrumental variable
KW  - female labor supply
KW  - tax and benefit system
KW  - Europe
        ER  -