This paper examines the effects of the Working Families' Tax Credit (WFTC) on couples in Britain. We develop a simple … model of household decisions which explicitly accounts for the role played by the tax and benefit system. Its main … to receive the tax credit, they also experienced a greater risk of divorce. We find virtually no effect for women with …

examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to … adjustment of intra-family transfers compensates the secondary earner for the increased tax load …

examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to … adjustment of intra-family transfers compensates the secondary earner for the increased tax load. -- individual taxation ; joint …

advantage in home production relative to market work will imply a higher marginal tax rate. Using a realistic calibration, we … show that these two results may combine to imply a higher optimal tax rate on female labor supply. This result stands in …. Extending the model to include altruistic preferences, leisure, or human capital accumulation reduces optimal tax rates, while …

-cooperative household equilibrium. We find that the first-best Pigou tax rules are solely determined by spouses' relative marginal rates of … elasticity rule and partly by a Pigouvian tax element. We show that these two forces work in opposite directions in determining …

This paper examines the effects of the Working Families' Tax Credit (WFTC) on couples in Britain. We develop a simple … model of household decisions which explicitly accounts for the role played by the tax and benefit system. Its main … to receive the tax credit, they also experienced a greater risk of divorce. We find virtually no effect for women with …