WHY DO EUROPEANS WORK SO LITTLE?

Conny Olovsson

International Economic Review, 2009, vol. 50, issue 1, pages 39-61

Abstract: Market work per person is roughly 10% higher in the United States than in Sweden. However, if we include the work carried out in home production, the total amount of work only differs by 1%. I set up a model and show that differences in policy-mainly taxes-can account for the discrepancy in both labor supply and home production between Sweden and the United States. These results are independent of the elasticity of labor supply. Copyright © (2009) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 2009

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