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dc.contributor.authorFlipo, Anneen_US
dc.contributor.authorFougère, Denisen_US
dc.contributor.authorOlier, Lucileen_US
dc.description.abstractOur 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 usinghousehold individual data collected by INSEE (Paris) in 1996. In this model, the net hourlywage paid to the domestic employee, the household preferences for consumption of in-homeservices and the decision to take advantage of the tax reduction are considered asendogenous variables. Estimation of the econometric model uses the fact that somehouseholds are observed to consume domestic services and to take advantage of the taxreduction, while others either consume such services but do not take advantage of the taxreduction, or do not consume these services at all. Its identification relies on an exclusionrestriction resulting from the tax credit schedule. Results show that the probability ofconsuming in-home services increases with age and income. A ten per cent increase in thetax reduction would increase from 45.9 to 50.8 per cent the proportion of householdsbenefiting 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 doso after the ten per cent increase in the tax reduction. These simulated variations wouldmainly concern high-income households.en_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonn-
dc.relation.ispartofseries|aIZA Discussion paper series |x1392en_US
dc.subject.keywordservices in the homeen_US
dc.subject.keywordtax reductionen_US
dc.subject.keywordhousehold demanden_US
dc.subject.keywordlabor costen_US
dc.titleIs the Household Demand for In-Home Services Sensitive to Tax Reductions? : The French Caseen_US
dc.typeWorking Paperen_US

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