Women’s and men’s responses to in-work benefits: the influence of children

Table 5 Simulated responses (in percent) on labor supply by gender and type of household

	Married/Cohabiting with children	Married/Cohabiting without children
Women
Wage elasticity	0.07	0.07
Implicit wage elasticity	0.08	0.08
Not in the labor force	−0.26	−0.40
Men
Wage elasticity	0.04	0.06
Implicit wage elasticity	0.05	0.06
Not in the labor force	−0.37	−0.37

Note: The wage elasticity corresponds to the percentage change in mean hours of work when the gross wages over all individuals change by one percent. The implicit wage elasticity corresponds to the ratio between the simulated change in the mean hours of work and the percentage change in disposable income as a result of a 10 percent reduction in the municipal tax rate. Not in the labor force corresponds to the effect on those that work zero hours