The impact of tax reform in 2004 on the female labour supply in Japan

Kei Sakata, Colin R Mckenzie

Research output: Chapter in Book/Report/Conference proceedingConference contribution

4 Citations (Scopus)

Abstract

In 2003, the Japanese Diet passed legislation to abolish part of the special deduction for spouses (Haigusha Tokubetsu Kojo) which would take effect in the 2004 tax year. This paper investigates the impact of this tax reform on female labour supply in Japan. A number of earlier studies have shown that married women are likely to adjust their labour supply in order for their husbands to become eligible to take advantage of this deduction. By using the first and second waves of the Keio Household Panel Survey (KHPS) collected in 2004 and 2005, this paper uses the difference-in-differences approach to examine whether there has been any change in the behaviour of female labour supply as a result of this tax reform. The empirical evidence indicates that the tax reform in 2004 had a negative and statistically significant impact on both the decision of female spouses to enter the labour market and on the number of hours they worked conditional on their participation in the labour market. In addition, the empirical evidence obtained does not support the Douglas-Arisawa Law.

Original languageEnglish
Title of host publicationMODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings
Pages1084-1090
Number of pages7
Publication statusPublished - 2005
EventInternational Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, MODSIM05 - Melbourne, VIC, Australia
Duration: 2005 Dec 122005 Dec 15

Other

OtherInternational Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, MODSIM05
CountryAustralia
CityMelbourne, VIC
Period05/12/1205/12/15

Fingerprint

Labor Supply
Tax
Taxation
Japan
Personnel
Deduction
Nutrition
Likely
Tax reform
Female labor supply
Spouses
Empirical evidence
Labour market
Evidence
Market

Keywords

  • Difference-in differences
  • Female labour supply
  • Policy reform
  • Program evaluation
  • Tax reform

ASJC Scopus subject areas

  • Information Systems and Management
  • Modelling and Simulation

Cite this

Sakata, K., & Mckenzie, C. R. (2005). The impact of tax reform in 2004 on the female labour supply in Japan. In MODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings (pp. 1084-1090)

The impact of tax reform in 2004 on the female labour supply in Japan. / Sakata, Kei; Mckenzie, Colin R.

MODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings. 2005. p. 1084-1090.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Sakata, K & Mckenzie, CR 2005, The impact of tax reform in 2004 on the female labour supply in Japan. in MODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings. pp. 1084-1090, International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, MODSIM05, Melbourne, VIC, Australia, 05/12/12.
Sakata K, Mckenzie CR. The impact of tax reform in 2004 on the female labour supply in Japan. In MODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings. 2005. p. 1084-1090
Sakata, Kei ; Mckenzie, Colin R. / The impact of tax reform in 2004 on the female labour supply in Japan. MODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings. 2005. pp. 1084-1090
@inproceedings{2b2865bb3f794829b6bb678657fdd7a7,
title = "The impact of tax reform in 2004 on the female labour supply in Japan",
abstract = "In 2003, the Japanese Diet passed legislation to abolish part of the special deduction for spouses (Haigusha Tokubetsu Kojo) which would take effect in the 2004 tax year. This paper investigates the impact of this tax reform on female labour supply in Japan. A number of earlier studies have shown that married women are likely to adjust their labour supply in order for their husbands to become eligible to take advantage of this deduction. By using the first and second waves of the Keio Household Panel Survey (KHPS) collected in 2004 and 2005, this paper uses the difference-in-differences approach to examine whether there has been any change in the behaviour of female labour supply as a result of this tax reform. The empirical evidence indicates that the tax reform in 2004 had a negative and statistically significant impact on both the decision of female spouses to enter the labour market and on the number of hours they worked conditional on their participation in the labour market. In addition, the empirical evidence obtained does not support the Douglas-Arisawa Law.",
keywords = "Difference-in differences, Female labour supply, Policy reform, Program evaluation, Tax reform",
author = "Kei Sakata and Mckenzie, {Colin R}",
year = "2005",
language = "English",
isbn = "0975840002",
pages = "1084--1090",
booktitle = "MODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings",

}

TY - GEN

T1 - The impact of tax reform in 2004 on the female labour supply in Japan

AU - Sakata, Kei

AU - Mckenzie, Colin R

PY - 2005

Y1 - 2005

N2 - In 2003, the Japanese Diet passed legislation to abolish part of the special deduction for spouses (Haigusha Tokubetsu Kojo) which would take effect in the 2004 tax year. This paper investigates the impact of this tax reform on female labour supply in Japan. A number of earlier studies have shown that married women are likely to adjust their labour supply in order for their husbands to become eligible to take advantage of this deduction. By using the first and second waves of the Keio Household Panel Survey (KHPS) collected in 2004 and 2005, this paper uses the difference-in-differences approach to examine whether there has been any change in the behaviour of female labour supply as a result of this tax reform. The empirical evidence indicates that the tax reform in 2004 had a negative and statistically significant impact on both the decision of female spouses to enter the labour market and on the number of hours they worked conditional on their participation in the labour market. In addition, the empirical evidence obtained does not support the Douglas-Arisawa Law.

AB - In 2003, the Japanese Diet passed legislation to abolish part of the special deduction for spouses (Haigusha Tokubetsu Kojo) which would take effect in the 2004 tax year. This paper investigates the impact of this tax reform on female labour supply in Japan. A number of earlier studies have shown that married women are likely to adjust their labour supply in order for their husbands to become eligible to take advantage of this deduction. By using the first and second waves of the Keio Household Panel Survey (KHPS) collected in 2004 and 2005, this paper uses the difference-in-differences approach to examine whether there has been any change in the behaviour of female labour supply as a result of this tax reform. The empirical evidence indicates that the tax reform in 2004 had a negative and statistically significant impact on both the decision of female spouses to enter the labour market and on the number of hours they worked conditional on their participation in the labour market. In addition, the empirical evidence obtained does not support the Douglas-Arisawa Law.

KW - Difference-in differences

KW - Female labour supply

KW - Policy reform

KW - Program evaluation

KW - Tax reform

UR - http://www.scopus.com/inward/record.url?scp=45749116341&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=45749116341&partnerID=8YFLogxK

M3 - Conference contribution

AN - SCOPUS:45749116341

SN - 0975840002

SN - 9780975840009

SP - 1084

EP - 1090

BT - MODSIM05 - International Congress on Modelling and Simulation: Advances and Applications for Management and Decision Making, Proceedings

ER -