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Why Do Europeans Work So Little

By Conny Olovsson, Mats Persson, Jeremy Greenwood, Assar Lindbeck, Steven Davis, Per Krusell and Thanks Annika Andreasson

Abstract

Market work per person is roughly 10 percent higher in the U.S. than in Sweden. However, if we include the work carried out in home production, the totalamountofworkonlydiffers by 1 percent. I set up a model and show that differences in policy — mainly taxes — can account for the discrepancy in both labor supply and home production between Sweden and the U.S. These results are independent of the elasticity of labor supply

Topics: Labor supply, taxes, home production
Year: 2003
OAI identifier: oai:CiteSeerX.psu:10.1.1.160.579
Provided by: CiteSeerX
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