@techreport{Flipo2004Household,
abstract = {Our paper examines the impact of tax reductions on the demand for services in the home.
For that purpose, we estimate a structural model of demand for such services by using
household individual data collected by INSEE (Paris) in 1996. In this model, the net hourly
wage paid to the domestic employee, the household preferences for consumption of in-home
services and the decision to take advantage of the tax reduction are considered as
endogenous variables. Estimation of the econometric model uses the fact that some
households are observed to consume domestic services and to take advantage of the tax
reduction, while others either consume such services but do not take advantage of the tax
reduction, or do not consume these services at all. Its identification relies on an exclusion
restriction resulting from the tax credit schedule. Results show that the probability of
consuming in-home services increases with age and income. A ten per cent increase in the
tax reduction would increase from 45.9 to 50.8 per cent the proportion of households
benefiting from the tax reduction among those who consume paid in-home services.
Moreover, 13.5 per cent of households who do not actually consume such services would do
so after the ten per cent increase in the tax reduction. These simulated variations would
mainly concern high-income households.},
author = {Anne Flipo and Denis Foug\`{e}re and Lucile Olier},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {J12; D13; 330; services in the home; tax reduction; household demand; labor cost; Hauspersonal; Steuerbeg\"{u}nstigung; Frankreich},
language = {eng},
number = {1392},
title = {Is the Household Demand for In-Home Services Sensitive to Tax Reductions? : The French Case},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/20689},
year = {2004}
}
