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

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

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Luigi Bonatti ()

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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Paper provided by Department of Economics, University of Trento, Italia in its series Department of Economics Working Papers with number 0719.

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Date of creation: 2007
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Handle: RePEc:trn:utwpde:0719

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Find related papers by JEL classification:
D10 - Microeconomics - - Household Behavior - - - General
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-08-08 (All new papers)

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