Econometrica: Mar, 1981, Volume 49, Issue 2

A Comparison of the Labor Force Behavior of Married Women in the United States and Canada, with Special Attention to the Impact of Income Taxes

https://doi.org/0012-9682(198103)49:2<451:ACOTLF>2.0.CO;2-J
p. 451-489

Alice Nakamura, Masao Nakamura

Estimation results are presented for the probability of working, the hourly wage rate, and the annual hours of work for wives in seven different age groups in both the U.S. and Canada. Federal and state or provincial taxes are incorporated into the analysis. An iterative estimation method is employed to circumvent the statistical problems resulting from the dependence of the hours of work on the tax rate, and the dependence of the tax rate on the hours of work.