Do Windfall Gains Affect Labour Supply? Evidence from the European Household Panel

We investigate whether workers adjust hours worked in response to windfall gains using data from the European Household Panel. The results suggest that unexpected variation in income has a negative (although small) effect on working hours. In particular, after receiving an unanticipated windfall gain, individuals are more likely to drop out of the labour force and the effects become larger as the size of windfall increases. Furthermore, the empirical findings show that the impact of windfall gains on labour supply: (i) is more important for young and old individuals, (ii) is mostly negative for married individuals with young children, (iii) but can be positive for single individuals at the age of around 40 years.windfall gains, working hours

Can Family-Support Policies Help Explain Differences in Working Hours Across Countries?

It has been suggested in the literature that taxes and subsidies play an important role in explaining the differences in working hours across countries. In this paper I test whether public programmes for family support play a role in explaining this variation. I analyse two types of policies: childcare subsidies and family cash benefits. I distinguish between people with children and people without children. Childcare subsidies should increase working hours in the economy and these effects should differ between people with children and people without children. Public support to families is also expected to decrease the amount of time people spend in childcare at home. I test this using household data for a set of European countries and the US. Empirical analysis, however, does not support the family-policy explanation. The effects of the policies on working hours are weak and insignificant. In regressions with time spent caring for children as a dependent variable, the estimates of the effects contradict the predictions of the theory. Furthermore, I don't find evidence for the expected differences in effects between parents and nonparents. I conclude that family policies are not helpful in explaining the variation in working hours across countries.Working hours, household behavior, taxation, subsidies, fiscal policies, child care, time allocation, labor supply

The Impact of CAP and EU Cohesion Support on Growth and Convergence of the Eastern Slovenia Region in the Period 2007-2013

The paper investigates economic performance of the Eastern Slovenia region in the changed economic and policy environment after the accession to the EU. The likely impacts of public expenditure in the field of cohesion and agricultural policy in the period of the Community financial perspective 2007-2013 are analysed by the regional InputOutput model estimated with modified GRIT methodology. Results of the impact analysis carried out by application of various policy scenarios suggest that: (i) the analysed funds can significantly contribute to the overall output growth of the regional economy; (ii) EU budgetary inflows contribute to economic convergence of the region; (iii) differences between the projected impacts primarily depend on the regional division of Slovenia at the NUTS 2 level; (iv) favourable prospects can be impaired by various limiting factors. Concerning the impacts of CAP expenditure, the paper argues against the popular opinion about its low redistributive and short-term effects.regional input-output model, Slovenia, Common Agricultural Policy, EU cohesion policy, International Relations/Trade, R11, R15, R58, Q18,

Do windfall gains affect labour supply? evidence from the european household panel

We investigate whether workers adjust hours worked in response to windfall gains using data from the European Household Panel. The results suggest that unexpected variation in income has a negative (although small) effect on working hours. In particular, after receiving an unanticipated windfall gain, individuals are more likely to drop out of the labour force and the effects become larger as the size of windfall increases. Furthermore, the empirical findings show that the impact of windfall gains on labour supply: (i) is more important for young and old individuals, (ii) is mostly negative for married individuals with young children, (iii) but can be positive for single individuals at the age of around 40 years.Fundação para a Ciência e a Tecnologia (FCT

Working hours, childcare support, wage inequality and windfall gains.

This work analyses working hours, childcare support, wage inequality and windfall gains. In Chapter I, I test whether family-support policies play a role in explaining variation in working hours across countries. I analyse childcare subsidies and family cash benefits and I distinguish between people with children and people without children. Childcare subsidies should increase working hours in the economy and these effects should differ between parents and nonparents. I test this using household data for a set of European countries and the US. Empirical analysis, however, does not support the family-policy explanation. The effects of the policies on working hours are weak and insignificant. Furthermore, I do not find evidence for the expected differences between parents and nonparents. I conclude that family policies are not helpful in explaining the variation in working hours across countries. In Chapter II, I argue that rising inequality in offered wages lowers average working hours. If the labour supply is concave in wages, the aggregate effect of the decrease in working hours of low- paid workers is greater than the increase in working hours of high-paid workers. Furthermore, due to low market opportunities, some of the low-paid workers may leave the labour force and become inactive. Using the CPS-MORG data for prime-age men I find evidence in support of this explanation. After controlling for the average wage, wage inequality has a negative effect on the labour supply. In Chapter III, I investigate whether workers adjust hours of work in response to windfall gains using data from the European Household Panel. The results suggest that unexpected variation in income has a small negative effect on working hours. Furthermore, the empirical findings show that the impact of windfall gains is more important for young and old individuals, is most negative for married individuals with young children, but can be positive for single individuals at the age of 40

Can family-support policies help explain differences in working hours across countries?

It has been suggested in the literature that taxes and subsidies play an important role in explaining the differences in working hours across countries. In this paper I test whether public programmes for family support play a role in explaining this variation. I analyse two types of policies: childcare subsidies and family cash benefits. I distinguish between people with children and people without children. Childcare subsidies should increase working hours in the economy and these effects should differ between people with children and people without children. Public support to families is also expected to decrease the amount of time people spend in childcare at home. I test this using household data for a set of European countries and the US. Empirical analysis, however, does not support the family-policy explanation. The effects of the policies on working hours are weak and insignificant. In regressions with time spent caring for children as a dependent variable, the estimates of the effects contradict the predictions of the theory. Furthermore, I don’t find evidence for the expected differences in effects between parents and nonparents. I conclude that family policies are not helpful in explaining the variation in working hours across countries