Effects of Spousal Deduction on Household Labor Supply
There have been warnings in recent years that the decrease in labor supply resulting from the declining birth rate could lead to an economic downturn. A contraction in labor supply leads to a reduction in salary income and affects tax revenues. Thus, as part of a growth strategy, attention is focused on promoting the activities of married women as a potential labor force. Further, there are active discussions on the supply of married women as labor, and the approach to take for spousal deductions and dependent deductions.