Department of Economics
W. P. Carey School of Business
Arizona State University
P.O. Box 879801
Tempe, AZ 85287-9801
Institutional Affiliation: Arizona State University
Information about this author at RePEc
NBER Working Papers and Publications
|December 2019||Why are Average Hours Worked Lower in Richer Countries?|
with Nicola Fuchs-Schündeln, David Lagakos, Hitoshi Tsujiyama: w26554
Why are average hours worked per adult lower in rich countries than in poor countries? Two natural candidates to consider are income effects in preferences, in which leisure becomes more valuable when income rises, and distortionary tax systems, which are more prevalent in richer countries. To assess the importance of these two forces, we build a simple model of labor supply by heterogeneous individuals and calibrate it to match international data on labor income taxation, government transfers relative to GDP, and hours worked per adult. The model predicts that income effects are the main driving force behind the decline of average hours worked with GDP per capita. We reach a similar conclusion in an extended model that matches cross-country patterns of labor supply along the extensive and...
|September 2018||Long-term Changes in Married Couples' Labor Supply and Taxes: Evidence from the US and Europe Since the 1980s|
with Bettina Brüggemann, Nicola Fuchs-Schündeln, Hannah Paule-Paludkiewicz: w24995
We document the time-series of employment rates and hours worked per employed by married couples in the US and seven European countries (Belgium, France, Germany, Italy, the Netherlands, Portugal, and the UK) from the early 1980s through 2016. Relying on a model of joint household labor supply decisions, we quantitatively analyze the role of non-linear labor income taxes for explaining the evolution of hours worked of married couples over time, using as inputs the full country- and year-specific statutory labor income tax codes. We further evaluate the role of consumption taxes, gender and educational wage premia, and the educational composition. The model is quite successful in replicating the time series behavior of hours worked per employed married woman, with labor income taxes being t...
Published: Alexander Bick & Bettina Brüggemann & Nicola Fuchs-Schündeln & Hannah Paule-Paludkiewicz, 2019. "Long-term changes in married Couples' labor supply and taxes: Evidence from the US and Europe since the 1980s," Journal of International Economics, . citation courtesy of
|June 2018||Long-Term Changes in Married Couples’ Labor Supply and Taxes: Evidence from the U.S. and Europe since the 1980s|
with Bettina Brüggemann, Nicola Fuchs-Schündeln, Hannah Paule-Paludkiewicz
in NBER International Seminar on Macroeconomics 2018, Jordi Galí and Kenneth West, organizers
|January 2016||How do Hours Worked Vary with Income? Cross-Country Evidence and Implications|
with Nicola Fuchs-Schündeln, David Lagakos: w21874
This paper builds a new internationally comparable database of hours worked to measure how hours vary with income across and within countries. We document that average hours worked per adult are substantially higher in low-income countries than in high-income countries. The pattern of decreasing hours with income holds for both men and women, for adults of all ages and education levels, and along both the extensive and intensive margin. Within countries, hours worked per employed are also decreasing in the individual wage for most countries, though in the richest countries, hours worked are flat or increasing in the wage. Our findings imply that aggregate productivity and welfare differences across countries are larger than currently thought.
Published: Alexander Bick & Nicola Fuchs-Schündeln & David Lagakos, 2018. "How Do Hours Worked Vary with Income? Cross-Country Evidence and Implications," American Economic Review, vol 108(1), pages 170-199. citation courtesy of