TY  - JOUR
AU  - Fang,Lei
AU  - Rogerson,Richard
TI  - Policy Analysis in a Matching Model with Intensive and Extensive Margins
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13007
PY  - 2007
Y2  - April 2007
UR  - http://www.nber.org/papers/w13007
L1  - http://www.nber.org/papers/w13007.pdf
N1  - Author contact info:
Lei Fang
Department of Economics
Arizona State University
Tempe AZ 85287
E-Mail: lei.fang.1@asu.edu

Richard Rogerson
Woodrow Wilson School of
  Public and International Affairs
323 Bendheim Hall
Princeton University
Princeton, NJ 08544
Tel: 609-258-4839
Fax: 609-258-5349
E-Mail: rdr@princeton.edu
AB  - The large differences in hours of work across industrialized countries reflect large differences in both employment to population ratios and hours per worker. We imbed the canonical model of labor supply into a standard matching model to produce a model in which both the intensive and extensive margins are operative. We then assess the implications of several policies for changes along the two margins. Firing taxes and entry barriers both lead to changes in hours and employment in opposite directions, while tax and transfer policies lead to decreases in both employment and hours per worker.
ER  -