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Title: Analyzing female labor supply -- Evidence from a Dutch tax reform

Author(s): Nicole Bosch and Bas van der Klaauw

Publication Date: June 2009

Keyword(s): endogeneity, labor force participation, Uncompensated wage elasticity and working hours

Programme Area(s): Labour Economics

Abstract: Among OECD countries, the Netherlands has average female labor force participation, but by far the highest rate of part-time work. This paper investigates the extent to which married women respond to financial incentives. We exploit the exogenous variation caused by a substantial Dutch tax reform in 2001. Our main conclusion is that the positive significant effect of tax reform on labor force participation dominates the negative insignificant effect on working hours. Our preferred explanation is that women respond more to changes in tax allowances than to changes in marginal tax rates.

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Bibliographic Reference

Bosch, N and van der Klaauw, B. 2009. 'Analyzing female labor supply -- Evidence from a Dutch tax reform'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7337