The payroll tax contribution limit and women's labor market outcomes

IF 2.7 1区 社会学 Q1 FAMILY STUDIES
Manuel Schechtl, Andreas Haupt
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Abstract

Objective

To examine the effect of the male partner's entry into payroll tax-exempt earnings on the female partner's labor market outcomes.

Background

Employees only pay payroll taxes up to a specific limit, which results in a comparatively greater increase in the take-home pay of individuals who earn labor incomes above this threshold. We argue that returns from payroll-exempt labor are gendered: That is, because men are more likely high earners than women, they will more often benefit from the payroll tax ceiling. This increases the labor market returns of men and sets substantial incentives within couples to reduce the paid labor of the secondary earner.

Method

We use panel data from the United States (PSID) to examine changes in women's annual work hours, hourly wages, and earnings over the partner's entry into payroll tax-exempt labor (treatment) using fixed-effect models with individual slopes. The models enable us to assess women's labor market outcomes while adjusting for heterogeneous within-couple earnings differential slopes before treatment in addition to any time-constant heterogeneity. Our sample contains 7297 women providing 65,811 observations.

Results

Women's earnings on average diminished by 4% after the partner breaks through the payroll tax contribution threshold. This was mostly explained by changes in annual work hours, which on average decreased by 4%. We did not find reduced hourly wages in the short run.

Conclusion

We conclude that payroll exemptions for high earners reinforce gender inequality within upper-income couples, which is a link hitherto missed in the literature.

Abstract Image

工资税缴款限制和女性劳动力市场结果
目的探讨男性合伙人进入工资免税收入对女性合伙人劳动力市场结果的影响。员工只需缴纳一定限额的工资税,这就导致劳动收入超过这个限额的个人的实得工资增长相对更大。我们认为,免工资劳动的回报是有性别的:也就是说,因为男性比女性更有可能是高收入者,他们通常会从工资税上限中受益更多。这增加了男性在劳动力市场的回报,并在夫妻之间建立了实质性的动机,以减少第二收入者的有偿劳动。方法我们使用来自美国(PSID)的面板数据,使用具有个体斜率的固定效应模型来检查伴侣进入工资免税劳动(待遇)后女性年工作时间、小时工资和收入的变化。这些模型使我们能够评估女性劳动力市场的结果,同时调整治疗前夫妻收入差异的异质性,以及任何时间常数的异质性。我们的样本包含7297名女性,提供了65,811项观察结果。结果在配偶超过工资税缴纳门槛后,女性的平均收入下降了4%。这主要是由于年工作时间的变化,年工作时间平均减少了4%。我们没有发现在短期内每小时的工资减少了。我们得出的结论是,高收入者的工资豁免加剧了高收入夫妇中的性别不平等,这是迄今为止文献中遗漏的一个联系。
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来源期刊
CiteScore
12.20
自引率
6.70%
发文量
81
期刊介绍: For more than 70 years, Journal of Marriage and Family (JMF) has been a leading research journal in the family field. JMF features original research and theory, research interpretation and reviews, and critical discussion concerning all aspects of marriage, other forms of close relationships, and families.In 2009, an institutional subscription to Journal of Marriage and Family includes a subscription to Family Relations and Journal of Family Theory & Review.
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