IDEAS home Printed from
   My bibliography  Save this article

The Effects of Taxes on Aggregate Labor: A Cross-Country General-Equilibrium Study


  • Hansson, Ingemar
  • Stuart, Charles


At empirically reasonable labor supply elasticities, equilibrium models of public finance predict that greater taxes in a country should lead to lower aggregate labor. The authors examine data from a cross-section of twenty-two OECD economies for such a relationship. The approach is to estimate parameters of a static general-equilibrium model of aggregate labor. Greater taxes do appear to reduce equilibrium labor in the authors' sample. Indeed, estimated aggregate wage elasticities are generally greater than consensus estimates from traditional studies of cross sections of individuals. Copyright 1993 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Hansson, Ingemar & Stuart, Charles, 1993. " The Effects of Taxes on Aggregate Labor: A Cross-Country General-Equilibrium Study," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(3), pages 311-326.
  • Handle: RePEc:bla:scandj:v:95:y:1993:i:3:p:311-26

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    1. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, July.
    2. Marcus Hagedorn & Iourii Manovskii, 2008. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited," American Economic Review, American Economic Association, vol. 98(4), pages 1692-1706, September.
    3. Dale Mortensen & Eva Nagypal, 2007. "More on Unemployment and Vacancy Fluctuations," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 327-347, July.
    4. Robert E. Hall, 2005. "Job Loss, Job Finding, and Unemployment in the U.S. Economy Over the Past Fifty Years," NBER Working Papers 11678, National Bureau of Economic Research, Inc.
    5. Moen, Espen R & Rosén, Åsa, 2006. "Incentives in Competitive Search Equilibrium and Wage Rigidity," CEPR Discussion Papers 5554, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Salhofer, Klaus & Schneider, Friedrich & Streicher, Gerhard, 1999. "Least Cost Efficiency Of Agricultural Programs: An Empirical Investigation," 1999 Annual meeting, August 8-11, Nashville, TN 21565, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Inge Mayeres, 1999. "The Distributional Impacts of Policies for the Control of Transport Externalities.An Applied General Equilibrium Model," Working Papers 1999.8, Fondazione Eni Enrico Mattei.
    3. Friedrich Schneider & Klaus Salhofer & Erwin Schmid & Gerhard Streicher, 2001. "Was the Austrian agricultural policy least cost efficient?," Economics working papers 2001-03, Department of Economics, Johannes Kepler University Linz, Austria.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scandj:v:95:y:1993:i:3:p:311-26. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.