Tax policy and returns to education

A. L. Booth, M. G. Coles

Research output: Contribution to journalArticlepeer-review


This paper considers how asymmetric tax treatment, where labour market earnings are taxed but household production is untaxed, affects educational choice and labour supply. We show that taxes on labour market earnings can generate a large (non-marginal) switch to home production and the ensuing deadweight losses are large. Using a cross-country panel, we find that gender differences in labour supply responses to tax policy can explain differences in aggregate labour supply and years of education across countries.

Original languageEnglish (US)
Pages (from-to)291-301
Number of pages11
JournalLabour Economics
Issue number1
StatePublished - Jan 2010


  • Education
  • Gender
  • Increasing returns
  • Labour supply
  • Tax policy

ASJC Scopus subject areas

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management


Dive into the research topics of 'Tax policy and returns to education'. Together they form a unique fingerprint.

Cite this