For Richer and for Poorer : An Analysis of the Effect of ‘Ehegattensplitting’ on Married Women's Labor Supply

This thesis investigates whether ‘Ehegattensplitting’ discourages labor-market participation among married women in Germany. Using panel data from nine European countries over the period 2001-2020, the study examines whether joint taxation contributes to differences in employment and average weekly hours worked between married and unmarried women within a fixed-effects framework. The empirical analysis finds a statistically significant relationship on the intensive margin, while no corresponding association is identified on the extensive margin. Taken together, the results suggest that ‘Ehegattensplitting’ may disproportionately weaken secondary earner’s labor-supply incentives, but no causal relationships can be definitively established. The study provides policy-relevant interpretations on how joint taxation might affect German married women’s labor-market decisions, particularly along the intensive margin.