Marriage stability, taxation and aggregate labor supply in the U.S. vs. Europe

A-Tier
Journal: Journal of Monetary Economics
Year: 2015
Volume: 72
Issue: C
Pages: 1-20

Authors (3)

Chakraborty, Indraneel (not in RePEc) Holter, Hans A. (University of Delaware) Stepanchuk, Serhiy (not in RePEc)

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

Americans work more than Europeans. Using micro-data from the United States and 17 European countries, we document that women are typically the largest contributors to the cross-country differences in work hours. We also show that there is a negative relation between taxes and annual hours worked, driven by men, and a positive relation between divorce rates and annual hours worked, driven by women. In a calibrated life-cycle model with heterogeneous agents, marriage and divorce, we find that the divorce and tax mechanisms together can explain 45% of the variation in labor supply between the United States and the European countries.

Technical Details

RePEc Handle
repec:eee:moneco:v:72:y:2015:i:c:p:1-20
Journal Field
Macro
Author Count
3
Added to Database
2026-01-25