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There is wide variation in the degree of gender gap in test scores around the world, suggesting the strong influence of institutions, culture and inequality. We present comparative evidence on the gender gap in educational achievement in China, Japan, and the USA, with an emphasis on the gender-specific effect of parental income and education, and the child’s own preferences for study subjects. We used three major national representative longitudinal surveys with rich information about cognitive outcome measures of respondent children as well as educational investment and parental socio-economic status that allow us to analyze their inter-relationship. We found that low household income tends to have more adverse effects on language test scores for boys than for girls in the USA, as is consistent with previous studies. However, it does not have an impact on gender gap in test scores in China and tends to affect girls more adversely than boys in Japan.

The Japanese tax system offers an opportunity to investigate the labor supply response of married women to the income tax and the intrahousehold resource allocation mechanism, since the deductible amount from the husband’s income decreases as the wife’s earnings increase. Using cross-section data, I structurally estimate the labor supply of married women under the piece-wise linear budget constraint created by the Japanese tax and social security system. I find that the wife’s labor supply response to her husband’s decreasing deduction tends to be greater than the response to her own income tax. This suggests that not only the unitary model is rejected but also that female labor is allocated inefficiently within a family. Finally, this study shows that the choice of household model affects the predicted effect of policy reform and that the currently proposed reforms will have less of an effect on the labor supply of married women than previous studies claim. Copyright Springer Science+Business Media, LLC 2006Female labor supply, Income tax, Spousal deduction, Intrahousehold allocation, D12, H31, J22,

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