Distortionary Taxation and Labor Supply
This paper examines empirically the effects of distortionary taxation on labor supply using a general equilibrium framework. The long-term relations predicted by the model are derived and tested using data from Canada, United States, Germany, and Japan. In all these countries, labor-tax changes are found to be persistent and to have played an important role in the observed downward trend in hours worked.
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Volume (Year): 35 (2003)
Issue (Month): 3 (June)
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