Study reveals that joint taxation may exacerbate gender inequality in households
Research by professors at FGV EPGE published in the Journal of Public Economics analyzes the impacts of family taxation on income distribution and power balance between spouses
A study conducted by professors and alumni of the EPGE Escola Brasileira de Economia e Finanças (FGV EPGE) indicates that the joint taxation of household income can intensify gender inequalities within homes. The article, titled "Intrahousehold Inequality and the Joint Taxation of Household Earnings," was published in the Journal of Public Economics and is authored by professors Carlos Eugenio Ellery Lustosa da Costa and Humberto Luiz Ataíde Moreira, in collaboration with researchers Cassino B. Alves and Felipe Lobel Araujo Castro, PhDs from FGV EPGE.
The research evaluates how different taxation regimes—especially the joint taxation of household income—affect income distribution among spouses. The study shows that when taxes are based solely on the total household income, without regard for how it is divided between husband and wife, distortions can arise that, in certain contexts, reinforce gender inequalities and decrease women's financial autonomy in heterosexual couples.
The study also assesses the impacts on work incentives, revealing that joint taxation may disincentivize one spouse from participating in the labor market, typically the one with lower income.
The conclusions provide important evidence for the debate on tax reform and gender equity, suggesting that fiscal policies should consider not only economic efficiency but also the distributive effects within households.
To read the full article, click here.
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