Long-term changes in labor supply and taxes: Evidence from OECD countries, 1956-2004

Lee Ohanian, Andrea Raffo and Richard Rogerson

Journal of Monetary Economics, 2008, vol. 55, issue 8, 1353-1362

Abstract: We document large differences in trend changes in hours worked across OECD countries between 1956 and 2004. We assess the extent to which these changes are consistent with the intratemporal first order condition from the neoclassical growth model, augmented with taxes on labor income and consumption expenditures. We find that the model can account for most of the trend changes in hours worked measured in the data. Differences in taxes explain much of the variation in hours worked both over time and across countries.

Keywords: Labor; supply; Wedges; Taxes (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (236)

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Related works:
Working Paper: Long-term changes in labor supply and taxes: evidence from OECD countries, 1956-2004 (2006)
Working Paper: Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004 (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:55:y:2008:i:8:p:1353-1362

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