Effects of labor taxes on hours of market and home work: The role of international capital mobility and trade

• Main Author: HOON, Hian Teck
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Bias; High dimension; Refit; Regularization.; Labor Economics; Labor Relations; Taxation
• Online Access: https://ink.library.smu.edu.sg/soe_research_all/15; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1014&context=soe_research_all
• Institution: Singapore Management University

This paper evaluates the Prescott (2004) hypothesis that permanently higher payroll taxes fully explain the decline in number of market hours worked in Europe (relative to America) over three decades. The Prescott model made assumptions that, in steady state, left out any incentive for either intern...