Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004
نویسندگان
چکیده
We document large differences in trend changes in hours worked across OECD countries over the period 1956-2004. We then assess the extent to which these changes are consistent with the intratemporal first order condition from the neoclassical growth model. We find large and trending deviations from this condition, and that the model can account for virtually none of the changes in hours worked. We then extend the model to incorporate observed changes in taxes. Our findings suggest that taxes can account for much of the variation in hours worked both over time and across countries.
منابع مشابه
Some thought experiments on the changes in labor supply in Turkey☆
a r t i c l e i n f o Turkey has the lowest hours worked (the product of total employment and annual hours per worker, divided by the size of the working-age population) among the OECD countries. We study the changes in hours of work following Ohanian, Raffo, and Rogerson (Journal of Monetary Economics, 2008) and find that the intratemporal first-order condition from the neoclassical growth mod...
متن کاملImpact, regulation and health policy implications of physician migration in OECD countries
BACKGROUND: In the face of rising demand for medical services due to ageing populations, physician migration flows are increasingly affecting the supply of physicians in Organisation for Economic Co-operation and development (OECD) countries. This paper offers an integrated perspective on the impact of physician migration on home and host countries and discusses international regulation and pol...
متن کاملTaxation and Labor Supply of Married Couples across Countries: A Macroeconomic Analysis
We document contemporaneous differences in the aggregate labor supply of married couples across 18 OECD countries. Relative to their US counterparts, European married men work on average 9 to 17 percent, and married women in Western and Southern Europe 26 and 31 percent fewer hours. Married women in Scandinavia and Eastern Europe however work almost as many hours as US married women. We find th...
متن کاملIs the Long-Run Labor Supply Vertical?
Growth theory and real-business-cycle theory virtually always assume that the long-run labor supply is vertical. This paper derives the restriction on preferences required for this assumption to hold and formulates an econometric method for testing this restriction. The restriction is then rejected using time-series data for the United States and many OECD countries. Some evidence against the r...
متن کاملLong-term Care Financing: Inserting Politics and Resource Allocation in the Debate; Comment on “Financing Long-term Care: Lessons From Japan”
The ageing of the countries’ populations, and in particular the growing number of the very old, is increasing the need for long-term care (LTC). Not surprisingly, therefore, the financing of LTC systems has become a crucial topic across the Organisation for Economic Co-operation and Development (OECD). In the last three decades, various financing policies have been carr...
متن کامل