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Hours worked: Explaining the cross-country differences through the effects of tax/benefit systems on the employment rate

  • Coralia Quintero-Rojas

    ()

    (Department of Economics and Finance, Universidad de Guanajuato)

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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File URL: http://economia.ugto.org/WorkingPapers/EC200803.pdf
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Paper provided by Universidad de Guanajuato, Department of Economics and Finance in its series Department of Economics and Finance Working Papers with number EC200803.

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Length: 25 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:gua:wpaper:ec200803
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  1. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
  2. Fran├žois Langot & Coralia Quintero-Rojas, 2009. "European vs American Hours Worked: assessing the role of the extensive and intensive margins," Economics Bulletin, AccessEcon, vol. 29(2), pages 530-542.
  3. Lee Ohanian & Andrea Raffo & Richard Rogerson, 2006. "Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004," NBER Working Papers 12786, National Bureau of Economic Research, Inc.
  4. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
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