Hours worked: Explaining the cross-country differences through the effects of tax/benefit systems on the employment rate
In this paper, we explain the observed lower hours worked in Central and Nordic European countries since the 80s, relative to Anglo-Saxon countries, through the effects of the tax benefit/systems on the employment rate. To this end we develop a search and matching economy `a la Pissarides that then we use as laboratory to conduct several quantitative experiences using an accounting method.
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