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Welfare Policy and the Sectoral Distribution of Employment

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  • Christopher Pissarides
  • Rachel Ngai

Abstract

We examine the distribution of hours of work across industrial sectors in OECD countries. We find large disparities when sectors are disaggregated into those that produce goods (a) with no home substitutes, (b) in health and social care, or (c) with close home substitutes. We attribute the disparities to tax and transfer policies in the presence of home production. General high taxation reduces hours in category (c) more than elsewhere and health and social subsidies increase hours in (b).

Suggested Citation

  • Christopher Pissarides & Rachel Ngai, 2009. "Welfare Policy and the Sectoral Distribution of Employment," 2009 Meeting Papers 191, Society for Economic Dynamics.
    • Handle: RePEc:red:sed009:191
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    Cited by:

    1. Mathias Trabandt & Harald Uhlig, 2012. "How Do Laffer Curves Differ across Countries?," NBER Chapters, in: Fiscal Policy after the Financial Crisis, pages 211-249, National Bureau of Economic Research, Inc.
    2. Alberto Alesina & Michele Battisti & Joseph Zeira, 2018. "Technology and labor regulations: theory and evidence," Journal of Economic Growth, Springer, vol. 23(1), pages 41-78, March.
    3. Mathias Trabandt & Harald Uhlig, 2012. "How Do Laffer Curves Differ across Countries?," NBER Chapters, in: Fiscal Policy after the Financial Crisis, pages 211-249, National Bureau of Economic Research, Inc.
    4. Trabandt, Mathias & Uhlig, Harald, 2011. "The Laffer curve revisited," Journal of Monetary Economics, Elsevier, vol. 58(4), pages 305-327.

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