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

A-Tier
Journal: Journal of Human Resources
Year: 2014
Volume: 49
Issue: 3

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:49:y:2014:iii:1:p:723-838
Journal Field
Labor
Author Count
3
Added to Database
2026-01-24