The Evolution of Taxes and Hours Worked in Austria, 1970-2005

John Dalton ()

MPRA Paper from University Library of Munich, Germany

Abstract: Aggregate hours worked per working-age person decreased in Austria by 25% from 1970 to 2005. During the same time period, taxes increased, particularly the effective marginal tax rate on labor income. Using a standard general equilibrium growth model with taxes, I quantitatively assess the role played by the evolution of taxes on the evolution of hours worked in Austria. The model accounts for 76% of the observed decrease in hours worked per working-age person. My results are in line with other studies, such as Prescott (2002), which find taxes play an important role in explaining aggregate hours worked.

Keywords: taxes; labor supply; growth accounting; dynamic general equilibrium (search for similar items in EconPapers)
JEL-codes: E13 E24 J22 (search for similar items in EconPapers)
Date: 2012-05
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Related works:
Journal Article: THE EVOLUTION OF TAXES AND HOURS WORKED IN AUSTRIA, 1970–2005 (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:48222

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