ZEW Discussion Papers
Family Tax Splitting: A Microsimulation of its Potential Labour Supply and Intra-household Welfare Effects in Germany
Beblo, Miriam, Denis Beninger und Francois Laisney (2003), Family Tax Splitting: A Microsimulation of its Potential Labour Supply and Intra-household Welfare Effects in Germany, ZEW Discussion Paper No. 03-32, Mannheim. Download
This paper assesses the effects that an introduction of the French family splitting mechanism would have on German families’ labour supply and intra-household consumption behaviour.
We use simulated real world microdata created by means of a ‘deterministic’ collective labour supply model.
The data are generated by a compound procedure of estimation
and calibration based on GSOEP data.
In a microsimulation the present tax-benefit system with child benefit/allowance is replaced by a tax scheme with family splitting.
The resulting changes in labour supply are surprisingly small, even for women.
Welfare effects are also modest, but differ for husbands and wives.
Keywords: Collective model, household labour supply, intra-household allocation, tax reform, family splitting
