Taxation and household labor supply

We evaluate reforms to the U.S. tax system in a life-cycle setup with heterogeneous married and single households, and with an operative extensive margin in labor supply. We restrict our model with observations on gender and skill premia, labor force par-ticipation of married females across skill groups, children, and the structure of marital sorting. We concentrate on two revenue-neutral tax reforms: a proportional income tax and a reform in which married individuals \u85le taxes separately (separate \u85ling). Our ndings indicate that tax reforms are accompanied by large increases in labor sup-ply that di¤er across demographic groups, with the bulk of the increase coming from married females. Under a proportional income tax reform, married females account for more than 50 % of the changes in hours across steady states, while under separate ling reform, married females account for all the change in hours