| Reference : Optimal Income Taxation for the Alleviation of Working-Poverty When Domestic Work is ... |
| E-prints/Working papers : Already available on another site | |||
| Business & economic sciences : Social economics | |||
| http://hdl.handle.net/10993/30709 | |||
| Optimal Income Taxation for the Alleviation of Working-Poverty When Domestic Work is Rewarded | |
| English | |
| Chen, Xi [STATEC] | |
| Salagean, Ioana [STATEC] | |
Zou, Benteng  [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >] | |
| 2016 | |
| No | |
| [en] working poverty ; time allocation ; optimal income taxation | |
| [en] The increase in income needed for working households to escape relative poverty
may be achieved either by households supplying more hours of paid work on the labor market, or by policy makers adjusting income taxation, minimum wages and social transfers targeted at working households. While past work has given considerable attention to the latter policy instruments, theoretical work on how income taxation could minimize working-poverty is scarce. Our study aims to fill this gap. Unlike the traditional optimal income taxation literature, which considers that households allocate time only between consumption and leisure, we explicitly model households’ decisions as including domestic work, which is a social contribution and should be rewarded. This new framework highlights (i) the importance of emphasizing the difference between domestic work and real leisure and, (ii) the policy implications of non-market time allocation. | |
| http://hdl.handle.net/10993/30709 | |
| http://wwwen.uni.lu/recherche/fdef/crea/publications/discussion_papers/2016 |
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