Effects of Spousal Deduction on Household Labor Supply
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There have been warnings in recent years that the decrease in labor supply resulting from the declining birth rate could lead to an economic downturn. A contraction in labor supply leads to a reduction in salary income and affects tax revenues. Thus, as part of a growth strategy, attention is focused on promoting the activities of married women as a potential labor force. Further, there are active discussions on the supply of married women as labor, and the approach to take for spousal deductions and dependent deductions.