Are Canada's income tax incentives aligned with its gender equity goals? An evaluation of income tax policies on women in the labour force

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Labour force participation and work tenure are prominent factors that directly affect gender pay gap. Academics have heavily cited the role of income tax policies in influencing household decisions on labour force participation of women. My research focuses on the effects of three federal income tax policies- Family Tax Cut, Canada Child Benefit and Caregiver Tax Credit - on women's participation in the labour force. The findings indicate a 106% increase in part-time work participation gap between men and women over 44 years since 1976. The effects of the three income tax policies on women's labour force participation could not be established through the methodology adopted. However, the study indicated other policies that may compound with income tax policies to influence women in the labourforce. Future avenues for research may include the study of two newly introduced fiscal policies appear promising but require clarity on enforcement to reduce the gender pay gap. A closer look into provincial tax policies in conjunction with employment policies would be the logical next step of study. An unconventional approach to study how income tax policies may incentivize men to stick to gender roles may also benefit future policy reviews.