Family labour supply and taxes in Ireland

摘要: We analyse the labour supply of husband and wife in Irish families. A static structural model used. Account is taken nonlinearities non-convexities tax-benefit system, fixed costs working, unobserved preference variation across families, prediction errors wages non-workers potential endogeneity gross wage rates. Moreover neoclassical extended such that information on involuntary unemployment incorporated a way. Smooth simulated maximum likelihood used to estimate model, using household data from 1997. The tax system characterized by ?income splitting? so liability couple depends essentially joint income wife. sensitivity husbands? wives? with respect own wage, partner's other income. compare under actual regime alternatives involving more independent taxation, extent which can explain low participation married women Ireland. (This abstract was borrowed another version this item.)