Download This PaperAssessing the Welfare Impact of the 2001 Tax Reform on Dual-Earner Families
Andrew Young School of Policy Studies Research Paper Series No. 07-38
FRB of Atlanta Working Paper No. 2007-27
35 Pages Posted: 6 Dec 2007
Date Written: December 2007
Abstract
The welfare impact of the 2001 income tax reform is assessed across dual-earner families with different characteristics. A household labor supply model is estimated to account for variable behavioral responses by family type. It was found that while higher education families received a larger share of the welfare gain generated from lower marginal tax rates, it was the lower education families that provided the bulk of the additional labor supply motivated by the tax reform. Differing welfare gains across families with different numbers of children were also found, highlighting the importance of allowing responses to vary across family characteristics when assessing the welfare impact of a policy change.
Keywords: family labor supply, tax reform, family welfare, family utility
JEL Classification: J22, H31, H23, I31
Suggested Citation: Suggested Citation
Georgia State University - Department of Economics ( email )
P.O. Box 3992
Atlanta, GA 30302-3992
United States
Robert Elijah Moore
Georgia State University - Andrew Young School of Policy Studies ( email )
P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-651-3756 (Phone)
404-651-4985 (Fax)
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Consumer Response to the Timing of Income: Evidence from a Change in Tax Withholding
-
Household Expenditure and the Income Tax Rebates of 2001
By David Johnson, Jonathan A. Parker, ...
-
Household Expenditure and the Income Tax Rebates of 2001
By David Johnson, Jonathan A. Parker, ...
-
The Reaction of Consumer Spending and Debt to Tax Rebates - Evidence from Consumer Credit Data
By Sumit Agarwal, Chunlin Liu, ...
-
The Reaction of Consumer Spending and Debt to Tax Rebates -- Evidence from Consumer Credit Data
By Sumit Agarwal, Chunlin Liu, ...
-
'3rd of Tha Month': Do Social Security Recipients Smooth Consumption between Checks?
-
Did the 2001 Tax Rebate Stimulate Spending? Evidence from Taxpayer Surveys
-
Is There a Daily Discount Rate? Evidence from the Food Stamp Nutrition Cycle