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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

Related research

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. Andrés Erosa & Luisa Fuster & Gueorgui Kambourov, 2011. "Towards a micro-founded theory of aggregate labor supply," Working Papers 2011-13, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales, revised 23 Nov 2011.
  2. 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.
  3. Giulio Zanella & Peter Rupert, 2010. "Revisiting Wage, Earnings, and Hours Profiles," 2010 Meeting Papers 1158, Society for Economic Dynamics.
  4. 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.
  5. Alonso-Ortiz, Jorge, 2013. "Taxes, Transfers and the Macroeconomy," MPRA Paper 49569, University Library of Munich, Germany.
  6. 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.
  7. 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.

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