TY  - JOUR
AU  - Cudmore,Edgar
AU  - Piggott,John
AU  - Whalley,John
TI  - Income Tax Design and the Desirability of Subsidies to Secondary Workers in a Household Model with Joint and Non-Joint Time
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13503
PY  - 2007
Y2  - October 2007
UR  - http://www.nber.org/papers/w13503
L1  - http://www.nber.org/papers/w13503.pdf
N1  - Author contact info:
Edgar Cudmore
The University of Western Ontario
Department of Economics
London, Ontario, Canada, N6A 5C2
E-Mail: elcudmor@uwo.ca

John Piggott
School of Economics
University of New South Wales
Sydney 2052, Australia
E-Mail: j.piggott@unsw.edu.au

John Whalley
Department of Economics
Social Science Centre
University of Western Ontario
London, ON N6A 5C2
CANADA
Tel: 519/661-3509
Fax: 519/661-3666
E-Mail: jwhalley@uwo.ca
M3  - presented at "Labor Market Intermediation Conf.", May 17-18, 2007
AB  - 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 would be where all household members or one alone can watch TV. When jointly consumed, however, TV services are valued more highly than the same consumption undertaken separately. We use this model to numerically investigate the welfare implications of different tax structures. In sharp contrast to existing literature, our results suggest the desirability of subsidizing secondary worker's labor supply. We also relate our discussion to existing individual-household tax unit literature.
ER  -