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Labor supply and government programs: A cross-country analysis

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

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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505566

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