From housewives to independent earners: can the tax system help Italian women to work?

Author

Francesco Figari

Publication Date

Jun 2011

Abstract

The paper analyses the incentive and the redistributive effects of introducing either a family based or an individual in-work benefit in Italy. The reforms are financed through the abolition of the existing tax credit targeted at inactive people. In-work benefits are means-tested transfers given to individuals conditional on their employment status. The results show an increase in the labour supply of both women in couples (with larger responses to the individual in-work benefit than the family based benefit) and lone mothers. Most of the behavioural changes take place among the poorest individuals with important redistributive effects.

Publication type

ISER Working Paper Series

Series Number

2011-15

Research areas

Family and gender, Population changes and labour market dynamics, Tax and benefit systems


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