In the year 2007 a reform was established that allowed private citizens in Sweden to make tax deductions on companies providing services pertaining to the household (called RUT-deduction). The year later another reform was introduced granting citizens additional tax deductions but this time concerning household renovation, reconstruction and extensive construction (called ROT-deduction). These tax deductions resulted in higher employment and more jobs being executed legally. The purpose of this paper is to examine and analyze what kind of effects these types of tax deductions would have on workers’ real wages and to look at to what extent these effects differ within a female dominated occupation and a male dominated occupation, from a gender perspective. The two professions that are chosen to be researched in this paper are the cleaning and painting professions. Furthermore, the purpose with this study is to examine whether this effect differs within the two separate professions. The study is executed with the use of econometric models, point estimation, economic theory and empirical studies. The result indicates that the RUT-deduction has the biggest positive impact on cleaners’ real wages. This paper shows that one underlying reason to this outcome could be that the cleaning service is a more price sensitive service and that the RUT-deduction might therefore have generated an excess in demand for that service. Nonetheless, to establish an equilibrium in the labor market the wages are required to rise in order to attract more cleaners to enter the certain market. However, this paper is unable to eliminate the possible theory of there being a general wage increase among workers in the private sector. In addition, this study is comprised of an inadequate amount of observations which impedes any reliable conclusions from being made based on evidence.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:liu-148972 |
| Date | January 2018 |
| Creators | Borg, Elin, Larsson, Josefin |
| Publisher | Linköpings universitet, Nationalekonomi, Linköpings universitet, Nationalekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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