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Labor supply and government programs: A cross-country analysis

Listed author(s):
  • Andrés Erosa

    ()

    (IMDEA Social Sciences Institute)

  • Luisa Fuster

    ()

    (IMDEA Social Sciences Institute)

  • Gueorgui Kambourov

    ()

    (University of Toronto)

There are substantial cross-country differences in labor supply late in the life cycle (age 50+). A theory of labor supply and retirement decisions is developed to quantitatively assess the role of social security, disability insurance, and taxation for understanding differences in labor supply late in the life cycle across European countries and the United States. The findings support the view that government policies can go a long way towards accounting for the low labor supply late in the life cycle in the European countries relatively to the United States, with social security rules accounting for the bulk of these effects.

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File URL: http://repec.imdea.org/pdf/imdea-wp2011-08.pdf
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Paper provided by Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales in its series Working Papers with number 2011-08.

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Date of creation: 16 Jun 2011
Date of revision: 19 Oct 2011
Publication status: Published in Journal of Monetary Economics 59(1), January 2012: 84-107
Handle: RePEc:imd:wpaper:wp2011-08
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  3. Andrés Erosa & Luisa Fuster & Gueorgui Kambourov, 2016. "Towards a Micro-Founded Theory of Aggregate Labour Supply," Review of Economic Studies, Oxford University Press, vol. 83(3), pages 1001-1039.
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  13. Alonso Ortiz, Jorge, 2009. "Social security and retirement across OECD countries," MPRA Paper 18752, University Library of Munich, Germany.
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  15. Guner, Nezih & Kaygusuz, Remzi & Ventura, Gustavo, 2008. "Taxation, Aggregates and the Household," CEPR Discussion Papers 6702, C.E.P.R. Discussion Papers.
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  18. Juan C. Conesa & Dirk Krueger, 1999. "Social Security Reform with Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(4), pages 757-795, October.
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  21. Agar Brugiavini & Franco Peracchi, 2004. "Micro-Modeling of Retirement Behavior in Italy," NBER Chapters, in: Social Security Programs and Retirement around the World: Micro-Estimation, pages 345-398 National Bureau of Economic Research, Inc.
  22. Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
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  24. Luisa Fuster, 1997. "Is altruism important for understanding the long-run effects of social security?," Economics Working Papers 234, Department of Economics and Business, Universitat Pompeu Fabra.
  25. Edward C. Prescott, 2002. "Prosperity and Depression," American Economic Review, American Economic Association, vol. 92(2), pages 1-15, May.
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