Working Paper: NBER ID: w13007
Authors: Lei Fang; Richard Rogerson
Abstract: The large differences in hours of work across industrialized countries reflect large differences in both employment to population ratios and hours per worker. We imbed the canonical model of labor supply into a standard matching model to produce a model in which both the intensive and extensive margins are operative. We then assess the implications of several policies for changes along the two margins. Firing taxes and entry barriers both lead to changes in hours and employment in opposite directions, while tax and transfer policies lead to decreases in both employment and hours per worker.
Keywords: No keywords provided
JEL Codes: E2; J2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| firing taxes (H29) | employment (J68) |
| firing taxes (H29) | hours worked (J22) |
| entry barriers (L13) | employment (J68) |
| entry barriers (L13) | hours worked (J22) |
| labor income taxes (J39) | employment (J68) |
| labor income taxes (J39) | hours worked (J22) |
| workweek limits (J81) | employment (J68) |
| workweek limits (J81) | hours worked (J22) |