Month: April 2024


Work life balance: Gender norms and the Swedish labour market

Gender identity norms are possible drivers of persistent gender inequalities in the labour market. But the extent to which such norms restrict the behaviour of couples is debated. This column examines how Swedish households changed their professional and housework balance in response to the introduction of a tax credit that altered the relative take-home pay in different ways for spouses within couples. The research shows that immigrant couples, who tend to come from countries with more traditional gender norms than Sweden, responded more strongly to a reduction in the husband’s tax rate than the wife’s. By not responding to women’s tax cuts, these couples may forgo as much as £2,000 per year in household disposable income.

Financing the green transition: The political economy of investment tax credits

Green policies create economic winners and losers and the unequal distribution of these gains and losses across the population raises questions about the political viability of such measures. This column explores how best to finance the green transition, presenting evidence from a theoretical study of the impact of the introduction of Incentive Tax Credits (ITCs) into a model economy. The authors argue that a mix of debt- and tax-financed ITCs can be used to incentivise investment in green capital, while guaranteeing that most of the population would support the scheme, both at the time of introduction and in the distant future. Without viable political support, there is little hope of getting urgently required policies off the ground.