Working Paper: NBER ID: w11566
Authors: Daniel S. Hamermesh; Joel Slemrod
Abstract: A large literature examines the addictive properties of such behaviors as smoking, drinking alcohol and eating. We argue that for some people addictive behavior may apply to a much more central aspect of economic life: working. Workaholism is subject to the same concerns about the individual as other addictions, is more likely to be a problem of higher-income individuals, and can, under conditions of jointness in the workplace or the household, generate negative spillovers onto individuals around the workaholic. Using the Retirement History Survey and the Panel Study of Income Dynamics, we find evidence that is consistent with the idea that high-income, highly educated people suffer from workaholism with regard to retiring, in that they are more likely to postpone earlier plans for retirement. The evidence and theory suggest that the negative effects of workaholism can be addressed with a more progressive income tax system than would be appropriate in the absence of this behavior.
Keywords: workaholism; addiction; tax policy; retirement
JEL Codes: J22; H24; D91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| workaholism (J22) | negative spillover effects on coworkers and family members (J29) |
| workaholism (J22) | postponement of retirement (J26) |
| higher education (I23) | likelihood of being retired (J26) |
| high income (D31) | workaholism (J22) |