Joint income taxation of married couples imposes a high marginal tax rate for secondary earners. Moving to individual taxation encourages female labor supply and therefore alters workforce composition. This paper develops a general equilibrium model with heterogeneous agents and family labor supply to characterize the composition channel's quantitative importance. Calibrating the model to Germany, I quantify the consequences of abolishing joint taxation. To incorporate workforce diversity, I allow for imperfect substitutability of male and female labor inputs in output production, disciplined by my estimate of the elasticity of 0.7. The complementarities between men and women substantially amplify the positive output effects of the tax reform. Labor force participation of married women rises by 12.6%, and overall output increases by 6.8%. Assuming perfect substitution, output rises by half as much because there is no demand response for male labor, and men participate less.
We study the response of monthly U.S. dollar real exchange rates to global and country-specific temperature shocks and find substantial cross-sectional differences across country pairs. The real exchange rate is more likely to depreciate if the country is warmer, wealthier, more dependent on agriculture, less open, and more dependent on tourism.
We study the expansion of the non-contributory public health care system Seguro Integral de Salud in Peru using a general equilibrium heterogeneous agents model and find that overall welfare increases, but informality rises while tax revenues and output decrease.
Using a life-cycle model of heterogeneous households, family labor supply, and intra-household bargaining, I study the effects of increasing U.S. public spending on childcare to Scandinavian levels on women's labor supply and find that the policy increases long-run labor force participation among married women.
I study a German pension reform which allows workers to accumulate more pension capital through continued employment during retirement using an overlapping generations heterogeneous agents model. I find the reform is welfare enhancing, and it creates large incentives for workers to remain employed longer.