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Labor supply and government programs: A cross-country analysis

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  • Erosa, Andrés
  • Fuster, Luisa
  • Kambourov, Gueorgui

Abstract

There are substantial cross-country differences in labor supply late in the life cycle (age 50+). A theory of labor supply and retirement decisions is developed to quantitatively assess the role of social security, disability insurance, and taxation for understanding differences in labor supply late in the life cycle across European countries and the United States. The findings support the view that government policies can go a long way towards accounting for the low labor supply late in the life cycle in the European countries relative to the United States, with social security rules accounting for the bulk of these effects.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Monetary Economics.

Volume (Year): 59 (2012)
Issue (Month): 1 ()
Pages: 84-107

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Handle: RePEc:eee:moneco:v:59:y:2012:i:1:p:84-107

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Web page: http://www.elsevier.com/locate/inca/505566

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Keywords: Social security; Disability insurance; Labor supply; Heterogeneity; Life cycle;

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References

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Citations

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Cited by:
  1. Andres Erosa & Luisa Fuster & Gueorgui Kambourov, 2011. "Towards a Micro-Founded Theory of Aggregate Labor Supply," Working Papers tecipa-443, University of Toronto, Department of Economics.
  2. Alonso-Ortiz, Jorge, 2013. "Taxes, Transfers and the Macroeconomy," MPRA Paper 49569, University Library of Munich, Germany.
  3. Laun, Tobias & Wallenius, Johanna, 2013. "Social Insurance and Retirement: A Cross-Country Perspective," Working Paper Series in Economics and Finance 744, Stockholm School of Economics.
  4. Braun, R. Anton & Kopecky, Karen A. & Koreshkova, Tatyana, 2013. "Old, sick, alone, and poor: a welfare analysis of old-age social insurance programs," Working Paper 2013-02, Federal Reserve Bank of Atlanta.
  5. Rupert, Peter & Zanella, Giulio, 2012. "Revisiting wage, earnings, and hours profiles," University of California at Santa Barbara, Economics Working Paper Series qt61f2f1hv, Department of Economics, UC Santa Barbara.
  6. Heylen Freddy & Van de Kerckhove Renaat, 2013. "Employment by age, education, and economic growth: effects of fiscal policy composition in general equilibrium," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 55, October.
  7. Johanna Wallenius & Tobias Laun, 2013. "The Role of Social Insurance Programs in Accounting for Cross-Country Differences in Retirement Behavior," 2013 Meeting Papers 221, Society for Economic Dynamics.

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