Why Are Mothers Working Longer Hours in Austria than in Germany? A Comparative Microsimulation Analysis*

Dearing, Helene; Hofer, Helmut; Lietz, Christine; Winter‐Ebmer, Rudolf; Wrohlich, Katharina

doi:10.1111/j.1475-5890.2007.00064.x

Cited by 52 publications

(34 citation statements)

References 19 publications

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“…In the case of parents of pre-school children joint employment involves often substantial childcare costs, which further contributes to the financial disincentives to work for the second earner. Research on the consequences of such features using data for other countries suggests that they play an important role in determining the pattern of employment among couples (Dearing et al, 2007;Steiner and Wrohlich, 2004).…”

Section: Figure 1 Herementioning

confidence: 99%

Financial support for families with children and its trade-offs: balancing redistribution and parental work incentives

Myck

Kurowská

Kundera

2013

Baltic Journal of Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: Financial support for families with children implies inherent trade-offs some of which are less obvious than others. In the end these trade-offs determine the effectiveness of policy with respect to the material situation of families and employment of their parents. We analyse several kinds of trade-offs involved using a careful selection of potential changes to the system of financial support for families with children. We focus on: 1) the trade-off between redistribution of income to poorer households and improving work incentives, 2) the trade-off between improving work incentives for first and for second earners in couples, 3) the trade-off between improving work incentives for those facing strong and weak incentives in the baseline system. The exercise is conducted on data from Poland, a country characterized by high levels of child poverty, low female employment and one of the lowest fertility rates in Europe. We demonstrate the complexity of potential consequences of family support policy and stress the need for well-defined policy goals and careful analysis ahead of any reform. Terms of use: Documents in

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Section: Figure 1 Herementioning

confidence: 99%

Financial support for families with children and its trade-offs: balancing redistribution and parental work incentives

Myck

Kurowská

Kundera

2013

Baltic Journal of Economics

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“…Moreover, taxing on a purely individual basis may come into conflict with the constitutional law in Germany 7 . In another paper, Dearing et al (2007) compare Austria and Germany in terms of work incentives created by the tax and transfer system and childcare institutions. Both countries are quite similar in many institutional aspects but differ in their detailed characteristics concerning the tax system: while in Germany married spouses are taxed jointly and are eligible for full income splitting, Austria has a system of individual taxation.…”

Section: Income Splitting As a Source For Reduced Labor Supplymentioning

confidence: 99%

The German labor market after the Great Recession: successful reforms and future challenges

Caliendo

Hogenacker

2012

J Eur Labor Stud

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The reaction of the German labor market to the Great Recession 2008/09 was relatively mild -especially compared to other countries. The reason lies not only in the specific type of the recession -which was favorable for the German economy structure -but also in a series of labor market reforms initiated between 2002 and 2005 altering, inter alia, labor supply incentives. However, irrespective of the mild response to the Great Recession, there are a number of substantial future challenges the German labor market will soon have to face. Female labor supply still lies well below that of other countries and a massive demographic change over the next 50 years will have substantial effects on labor supply as well as the pension system. In addition, due to a skill-biased technological change over the next decades, firms will face problems of finding employees with adequate skills. The aim of this paper is threefold. First, we outline why the German labor market reacted in such a mild fashion, describe current economic trends of the labor market in light of general trends in the European Union, and reveal some of the main associated challenges. Thereafter, the paper analyzes recent reforms of the main institutional settings of the labor market which influence labor supply. Finally, based on the status quo of these institutional settings, the paper gives a brief overview of strategies to combat adequately the challenges in terms of labor supply and to ensure economic growth in the future.

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“…First, we develop a structural discrete choice model based on the tax-benefit microsimulation model ITABENA (Hofer et al, 2003;Dearing et al, 2007) and estimate labor supply elasticities at intensive and extensive margins for various household types and income quantiles in Austria. Second, we use the structural estimates to evaluate employment potential and redistributive effects of a shift from universal child transfers to child tax deductibles.…”

Section: Introductionmentioning

confidence: 99%

Tax incentives and family labor supply in Austria

Hanappi

Müllbacher

2013

Rev Econ Household

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper approaches the question whether and to what extent a policy shift from universal child transfers towards child tax deductibles is capable of activating (mostly female) unused labor market potential in Austria. We develop a discrete choice labor supply model based on the EU-SILC datasets 2004-2010 and present static uncompensated own and cross wage elasticities at the intensive and extensive margins. We find that the family policy reform 2009 had only small employment effects, most of them being generated through the introduction of a child care deductible. To illustrate the employment potential of a shift from transfers to tax deductibles we propose several simulations showing that such a policy shift would yield an increase in full time equivalents of approximately 1.3% overall, with females in couples increasing their labor supply by up to 3.9%. Although the proposed policy shifts have highly regressive effects in terms of their impact on the distribution of disposable income, we show that phasing-out the tax deductible at higher income allows, in principle, for the compensation of lower-income households without jeopardizing positive employment effects. Terms of use: Documents in

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Why Are Mothers Working Longer Hours in Austria than in Germany? A Comparative Microsimulation Analysis*

Cited by 52 publications

References 19 publications

Financial support for families with children and its trade-offs: balancing redistribution and parental work incentives

Financial support for families with children and its trade-offs: balancing redistribution and parental work incentives

The German labor market after the Great Recession: successful reforms and future challenges

Tax incentives and family labor supply in Austria

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