Ngai, L. Rachel and Pissarides, Christopher A.
Welfare policy and the distribution of hours of work.
CEP Discussion Paper,
Centre for Economic Performance, London School of Economics and Political Science, London, UK.
We examine the distribution of hours of work across industrial sectors in OECD countries. We find large disparities when sectors are divided into three groups: one that produces goods without home substitutes and two others that have home substitutes — health and social work, and all others. We attribute the disparities to the countries’ tax and subsidy policies. High taxation substantially reduces hours in sectors that have close home substitutes but less so in other sectors. Health and social care subsidies increase hours in that sector. We compute these effects for nineteen OECD countries.
||© 2009 The authors
||hours of work, employment shares, home production, childcare, tax wedge, welfare state, social subsidies
|Library of Congress subject classification:
||H Social Sciences > HB Economic Theory
H Social Sciences > HV Social pathology. Social and public welfare. Criminology
|Journal of Economic Literature Classification System:
||I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J22 - Time Allocation and Labor Supply
H - Public Economics > H5 - National Government Expenditures and Related Policies > H53 - Government Expenditures and Welfare Programs
I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy; Regulation; Public Health
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