Taxation, cash benefits, or something else? How income-related family policies affect mothers’ labor supply in Austria, Germany, and the Netherlands

This paper examines the role income-related family policy measures play for mothers’ labor supply decisions in three countries with particularly high shares of female part-time employment: Austria, Germany, and the Netherlands. Structural labor supply simulations and individual calibration techniques are used to calculate the effects of two types of family benefits, namely universal cash benefits and income-dependent tax-reduction measures. We simulate the ex ante behavioral responses from the abolishment of these family policies in two reform scenarios and compare the results between differen... Mehr ...