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Source: Public Finance
Resulting in 1 citation.
1. Leuthold, Jane H.
The Effect of Taxation on the Probability of Labor Force Participation by Married Women
Public Finance 23 (1978): 280-294.
Cohort(s): Mature Women
Publisher: Australia Commonwealth Bureau of Statistics
Keyword(s): Health/Health Status/SF-12 Scale; Labor Force Participation; Modeling; Modeling, Probit; Taxes; Wives, Income

This study explores the impact of high marginal rates of tax on the labor force participation decision of married women with husbands present. Data from the NLS of Mature Women ages 30-44 are used to estimate a linear probability model of female labor force participation. The model relates the probability of a married woman working outside the home to various explanatory variables including the wife's disposable wage rate, the husband's after-tax wage, the after-tax non-work income of the family, the age and education level of the wife, the number and ages of the children, attitudes toward working, health of the wife, homeownership, and the demand for female labor. The results, based on a multivariate probit analysis, indicate that taxes tend to discourage female labor force participation and that the impact is stronger for black than for white wives. The estimation results were used to compute participation tax elasticities for white and black wives. The tax elasticities, showing the expected percentage change in the probability of labor force participation for a one percent change in the marginal tax rate, were negative and significantly different from zero for both races. The tax elasticity for black wives was roughly twice that of white wives.
Bibliography Citation
Leuthold, Jane H. "The Effect of Taxation on the Probability of Labor Force Participation by Married Women." Public Finance 23 (1978): 280-294.