Garstenauer, Viola; Siassi, Nawid - 2024
In this paper, we examine reforms that alleviate large employment disincentives induced by child-related transfers for … married mothers. We develop a life-cycle model where married couples face labor market, child care and fertility risk, and … participation tax rates exceed 25 percent for most mothers in our sample, and can be as high as 60 percent when including child care …