Sexism and taxation

Feb 15, 2008 23:27

The current tax system is sexist.

According to this paper by Alberto Alesina and Andrea Ichino women should be taxed at a lower rate than men because the women’s labor supply is more elastic than men’s labor supply. For those of you who aren’t econo-nerds that means when wages increase by x amount women will supply more extra labor than men will, and when wages decrease by x amount women will decrease the amount of labor that they supply by more than men will.

Politically it isn’t going to happen. Economically it makes sense.

econo-nerd

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