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Why Work More? The Impact of Taxes, and Culture of Leisure on Labor Supply in Europe

Author

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  • Mocan, Naci

    (Louisiana State University)

  • Pogorelova, Luiza

    (Louisiana State University)

Abstract

We use micro data from the European Social Survey to investigate the impact of “culture of leisure” and taxes on labor force participation and hours worked of second-generation immigrants who reside in 26 European countries. These individuals are born in Europe, and they have been exposed to institutional, legal and labor market structures of their countries, including the tax rates. Fathers of these individuals are first-generation immigrants who migrated from 81 different countries. We construct measures of "taste for leisure" in the country of origin of each immigrant father. We employ average and marginal taxes for each country of residence, and control for a large set of individual characteristics, in addition to attributes of the country of residence and country of ancestry. The results show that for women, both taxes and culture of leisure impact participation and hours worked. For men, taxes influence labor supply both at the intensive and the extensive margins, but culture of leisure has no impact.

Suggested Citation

  • Mocan, Naci & Pogorelova, Luiza, 2015. "Why Work More? The Impact of Taxes, and Culture of Leisure on Labor Supply in Europe," IZA Discussion Papers 9281, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9281
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    Cited by:

    1. Naci Mocan & Christian Raschke, 2016. "Economic well-being and anti-Semitic, xenophobic, and racist attitudes in Germany," European Journal of Law and Economics, Springer, vol. 41(1), pages 1-63, February.
    2. Даниелян, Владимир, 2016. "Детерминанты Пенсионного Возраста: Обзор Исследований [Determinants of Retirement Age: A Review of Research]," MPRA Paper 73865, University Library of Munich, Germany.
    3. Ek, Andreas, 2021. "Cross-country differences in preferences for leisure," Labour Economics, Elsevier, vol. 72(C).

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    More about this item

    Keywords

    tax; labor supply; leisure; immigrant; culture; origin;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • Z1 - Other Special Topics - - Cultural Economics

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