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"In this paper we analyze income tax design in a two member household labor supply model where time spent on consumption together by the two household members is valued differently from time spent apart. We treat consumption as a non excludable public good to members of the household; one example...
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, leisure, market work, and caregiving. The first goal of this estimation is to determine if time spent with children responds … to prices and demographics more like home production time or leisure. The second goal is to glean a better understanding … their children does not respond to price or demographic changes much like home production or leisure and that, somewhat …
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less per week. Husbands of treated women respond by reducing their labor supply by about half an hour, consistent with … substantial leisure complementarity, and specifically cut the non-usual component of their workweek, leaving usual hours unchanged …. Women's response to their husband's treatment is instead weak and rarely statistically significant, possibly due to heavier …
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