Employment, Hours per Worker and Taxes: A Life-Cycle Analysis

Richard Rogerson and Johanna Wallenius

Annals of Economics and Statistics, 2009, issue 95-96, 105-119

Abstract: We build a life cycle model of labor supply in which individuals choose both the fraction of life spent in employment and hours while employed. We develop a simple graphical representation of the steady state equilibrium labor supply choice and show that a tax on labor income used to finance a lump-sum transfer leads to a reduction of labor supply along both margins. These effects are consistent with the patterns observed in cross-country data.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.jstor.org/stable/27917405 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2009:i:95-96:p:105-119

Access Statistics for this article

Annals of Economics and Statistics is currently edited by Laurent Linnemer

More articles in Annals of Economics and Statistics from GENES Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Laurent Linnemer ().