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International Tax and Public Finance

, Volume 25, Issue 1, pp 140–165 | Cite as

Taxation and parental time allocation under different assumptions on altruism

  • Alessandra CasaricoEmail author
  • Alessandro Sommacal
Article
  • 265 Downloads

Abstract

This paper examines the effects of labor income taxation on parental time allocation in an OLG model in which child care arrangements, that is the combination of parental and non-parental time, matter for human capital accumulation. We show that the sign of the impact of labor income taxation on parental time with children and on growth critically depends on the assumption on the altruistic motives behind the choice of devoting time to children.

Keywords

Early childhood environment Child care Labor supply Paternalism Full altruism 

JEL Classification

J13 J22 J24 

Notes

Acknowledgements

We thank for their insightful comments the editor and two anonymous referees, as well as seminar participants at the PET conference in Lisbon, at the IIPF conference in Taormina, at the SIEP meeting in Pavia, at the University of Oslo and at the OLG days conference at the Paris School of Economics. The usual disclaimers apply. Part of the paper was written while Alessandra Casarico was visiting Oslo Fiscal Studies, which she thanks for hospitality. Alessandra Casarico acknowledges financial support from MIUR within a PRIN project. Alessandro Sommacal acknowledges financial support from MIUR within the FIRB project RBFR0873ZM 001.

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Copyright information

© Springer Science+Business Media New York 2017

Authors and Affiliations

  1. 1.Bocconi UniversityMilanItaly
  2. 2.Dondena Centre for Research on Social Dynamics and Public PolicyMilanItaly
  3. 3.CESIfoMunichGermany
  4. 4.University of VeronaVeronaItaly

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