Abstract
Labour supply is classified into five classes: one for zero hours a week (i.e. nonparticipation), and four for 1–14, 15–24, 25–34, and more than 34 hours a week, respectively. This allows us to investigate whether changes in the taz and social premium system have different effects on the labour supply in different hours classes. Such an investigation has been carried out by applying a multinomial logit analysis in combination with a method introduced by Hausman to allow the incorporatin of taxes and social premiums in the estimation of labour supply functions of Dutch married women. Comparing the 1983 and 1985 tax and social premium systems the results of the analysis indicate that the introduction of the new system has had only a small discouraging effect on the labour supply of Dutch married women.
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