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Evolution of preferences and cross-country differences in time devoted to market work

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  • Bonatti, Luigi
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    Abstract

    I model the hypothesis that preferences evolve and permanent differences in individual attitudes towards work emerge between two countries characterized initially by identical preferences as a result of a period in which only one of the two countries is subject to regulations constraining labor supply, or as a by-product of different tax rates on labor income. Hence, the elimination of these regulations may not allow the economy thus deregulated to converge to the same hours of market work per person of the other economy, and the long-run differential in market work between economies subject to different tax rates is amplified.

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    Bibliographic Info

    Article provided by Elsevier in its journal Labour Economics.

    Volume (Year): 15 (2008)
    Issue (Month): 6 (December)
    Pages: 1341-1365

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    Handle: RePEc:eee:labeco:v:15:y:2008:i:6:p:1341-1365

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    Web page: http://www.elsevier.com/locate/labeco

    Related research

    Keywords: Endogenous growth Time allocation Endogenous preferences Labor-market regulations Labor taxes;

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    Cited by:
    1. Benno Torgler, 2011. "Work Values in Western and Eastern Europe," CREMA Working Paper Series 2011-22, Center for Research in Economics, Management and the Arts (CREMA).

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