Marriage stability, taxation and aggregate labor supply in the U.S. vs. Europe

Indraneel Chakraborty, Hans Holter and Serhiy Stepanchuk

Journal of Monetary Economics, 2015, vol. 72, issue C, 1-20

Abstract: Americans work more than Europeans. Using micro-data from the United States and 17 European countries, we document that women are typically the largest contributors to the cross-country differences in work hours. We also show that there is a negative relation between taxes and annual hours worked, driven by men, and a positive relation between divorce rates and annual hours worked, driven by women. In a calibrated life-cycle model with heterogeneous agents, marriage and divorce, we find that the divorce and tax mechanisms together can explain 45% of the variation in labor supply between the United States and the European countries.

Keywords: Aggregate labor supply; Taxation; Marriage; Divorce; Heterogeneous households (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (31)

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Related works:
Working Paper: Marriage Stability, Taxation and Aggregate Labor Supply in the U.S. vs. Europe (2012)
Working Paper: Marriage Stability, Taxation and Aggregate Labor Supply in the U.S. vs. Europe (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:72:y:2015:i:c:p:1-20

DOI: 10.1016/j.jmoneco.2015.01.001

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