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Labor Supply and Government Programs: A Cross-Country Analysis

  • Andres Erosa
  • Luisa Fuster
  • Gueorgui Kambourov

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 relative to the United States, with social security rules accounting for the bulk of these effects.

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Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-442.

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Length: Unknown pages
Date of creation: 15 Nov 2011
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Handle: RePEc:tor:tecipa:tecipa-442
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  12. Luisa Fuster, 1999. "Is Altruism Important for Understanding the Long-Run Effects of Social Security?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(3), pages 616-637, July.
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  17. : Michele Boldrin & : Sergi Jiménez-Martín & : Franco Peracchi, . "Micro-Modelling Of Retirement Behavior In Spain," Working Papers 14-02 Classification-JEL , Instituto de Estudios Fiscales.
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  27. Luisa Fuster & Ayse Imrohoroglu & Selahattin Imrohoroglu, 2003. "A welfare analysis of social security in a dynastic framework," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1247-1274, November.
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