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

Author

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  • Coralia Quintero-Rojas

    () (Department of Economics and Finance, Universidad de Guanajuato)

Abstract

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.

Suggested Citation

  • Coralia Quintero-Rojas, 2008. "Hours worked: Explaining the cross-country differences through the effects of tax/benefit systems on the employment rate," Department of Economics and Finance Working Papers EC200803, Universidad de Guanajuato, Department of Economics and Finance.
  • Handle: RePEc:gua:wpaper:ec200803
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    File URL: http://economia.ugto.org/WorkingPapers/EC200803.pdf
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    References listed on IDEAS

    as
    1. Ohanian, Lee & Raffo, Andrea & Rogerson, Richard, 2008. "Long-term changes in labor supply and taxes: Evidence from OECD countries, 1956-2004," Journal of Monetary Economics, Elsevier, vol. 55(8), pages 1353-1362, November.
    2. 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.
    3. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Aggregate hours of work; employment rate; labor taxes; consumption tax; labor market institutions; matching model;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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