Welfare Policy and the Sectoral Distribution of Employment

Christopher Pissarides and L. Rachel Ngai

No 191, 2009 Meeting Papers from Society for Economic Dynamics

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).

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed009:191

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