Margherita Borella, Mariacristina De Nardi, Fang Yang, 23 November 2019

In the US, both taxes and social security benefits depend on one’s marital status and tend to discourage the labour supply of the secondary earner. Using information on US cohorts born in 1945 and 1955, this column shows that eliminating marriage-related provisions drastically increases the participation of married women over their entire life cycle and reduces the participation of married men after age 60. If the resulting government surplus were used to lower income taxation, there would be large welfare gains for the vast majority of the population.

Daniel Aaronson, Rajeev Dehejia, Andrew Jordan, Cristian Pop-Eleches , Cyrus Samii, Karl Schulze, 15 September 2017

Women’s fertility and labour supply decisions are made simultaneously, making it difficult to identify the effect of the former on the latter. This column explores the relationship using a dataset spanning 200 years and 103 countries, leveraging twin births to isolate causal effects. The key finding is that as countries develop, women’s labour supply becomes more responsive to additional children. The global decline in fertility over the last century has played a positive role in increasing women’s work in developed countries, but a negligible one in developing countries.

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