A note on-the-job amenities and supply of labor : the Cobb-Douglas case
In an article published by Decker (1988) it is demonstrated that the effect of earnings taxation on the compensated labor supply is ambiguous. In this paper I demonstrate that with Ihe Cobb-Douglas utility function an unambiguous result is attainable. In this case, the compensated tax effect on desired work hours is negative even if the on-the-job amenities are endogenous.
Volume (Year): 3 (1990)
Issue (Month): 1 (Spring)
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- Decker, Paul T., 1988. "The effect of taxation on labor supply when on-the-job amenities are endogenous," Economics Letters, Elsevier, vol. 27(1), pages 89-94.
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