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Labor supply and government programs: A cross-country analysis

Andres Erosa, Luisa Fuster and Gueorgui Kambourov

No 2011-08, Working Papers from Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales

Abstract: There are substantial cross-country differences in labor supply late in the life cycle (age 50+). A theory of labor supply and retirement decisions is developed to quantitatively assess the role of social security, disability insurance, and taxation for understanding differences in labor supply late in the life cycle across European countries and the United States. The findings support the view that government policies can go a long way towards accounting for the low labor supply late in the life cycle in the European countries relatively to the United States, with social security rules accounting for the bulk of these effects.

Keywords: social security; disability insurance; labor supply; heterogeneity; life cycle (search for similar items in EconPapers)
JEL-codes: D9 E2 E6 H2 H3 H5 J2 (search for similar items in EconPapers)
Date: 2011-06-16, Revised 2011-10-19
New Economics Papers: this item is included in nep-age, nep-eec, nep-eur, nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Journal of Monetary Economics 59(1), January 2012: 84-107

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Related works:
Journal Article: Labor supply and government programs: A cross-country analysis (2012) Downloads
Working Paper: Labor Supply and Government Programs: A Cross-Country Analysis (2011) Downloads
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