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In this paper, we use a microsimulation model to examine the labor supply implications of switching from joint taxation (“Ehegattensplitting”) to individual taxation. We show that the switch to individual taxation would increase labor supply by more than half a million full-time equivalents. However, such a reform also leads to financial losses for some groups of the population, which should be taken into account by economic policy makers.

A Split Decision: Welche Auswirkungen hätte die Abschaffung des Ehegattensplittings auf das Arbeitsangebot und die Einkommensverteilung?