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Journal Articles Journal of Human Resources Year : 2014

Comparing Labor Supply Elasticities in Europe and the United States: New Results

Abstract

We suggest the first large-scale international comparison of labor supply elasticities for 17 European countries and the United States using a harmonized empirical approach. We find that own-wage elasticities are relatively small and more uniform across countries than previously considered. Nonetheless, such differences do exist, and are found not to arise from different tax-benefit systems, wage/hour levels, or demographic compositions across countries, suggesting genuine differences in work preferences across countries. Furthermore, three other findings are consistent across countries: The extensive margin dominates the intensive margin; for singles, this leads to larger responses in low-income groups; and income elasticities are extremely small.

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Dates and versions

hal-01463097 , version 1 (09-02-2017)

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  • HAL Id : hal-01463097 , version 1

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Olivier Bargain, Kristian Orsini, Andreas Peichl. Comparing Labor Supply Elasticities in Europe and the United States: New Results. Journal of Human Resources, 2014, 49 (3), pp.723--838. ⟨hal-01463097⟩
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