Tax Illusion and Labour Supply of Married Women: Further Evidence From German Data
Journal
Kyklos
ISSN
0023-5962
Type
journal article
Date Issued
1995
Author(s)
Abstract
Not available in German. In the face of complex budget constraints the assumption of rationally acting individuals having complete knowledge of the tax system is a theoretical borderline. The specific issues examined in this study are: (i) "to what extent do consumers (here married women) perceive their true marginal tax rate when they make their labor supply decisions?", and (ii) "how does the perception of the marginal tax rate differ among various socio-economic groups ?". Using different approaches and different data sets we consistently find that: (i) against conventional wisdom the assumption of complete knowledge of the tax system does not fit the data well, and that (ii) education apears to be the main determinant of a correct perception of the marginal tax rate
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Publisher
Kyklos Verlag
Publisher place
Basel
Volume
48
Number
3
Start page
347
End page
368
Pages
22
Subject(s)
Eprints ID
15938