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Taxes, subsidies and gender gaps in hours and wages
[journal article]
Abstract Using microdata from 17 OECD countries, this paper documents a negative cross-country correlation between gender gaps in market hours and wages. We find that the cross-country differences in market hours are mostly accounted for by female market hours and the size of the sector that produces close s... view more
Using microdata from 17 OECD countries, this paper documents a negative cross-country correlation between gender gaps in market hours and wages. We find that the cross-country differences in market hours are mostly accounted for by female market hours and the size of the sector that produces close substitutes to home production. We quantify the role played by taxes and family care subsidies on the two gender gaps in a multi-sector model with home production. Higher taxes and lower subsidies reduce the marketization of home production, leading to lower market hours. The effect is largely on women because both home production and the production of its market substitutes are female-intensive. The larger fall in female market hours reduces relative female labour supply, contributing to a higher female to male wage ratio.... view less
Keywords
taxes; subsidy; transfer payments; gender-specific factors; labor force participation; woman; child care; wage level; family policy; international comparison
Classification
Labor Market Research
Women's Studies, Feminist Studies, Gender Studies
Public Finance
Free Keywords
EVS Trend File 1981-2017, ZA7503, Datenfile Version 3.0.0 (https://doi.org/10.4232/1.14021)
Document language
English
Publication Year
2023
Page/Pages
p. 373-408
Journal
Economica, 90 (2023) 358
ISSN
1468-0335
Status
Published Version; peer reviewed