Ngai, L. Rachel 
ORCID: 0009-0005-1605-856X and Pissarides, Christopher A. ORCID: 0000-0002-0695-058X
(2011)
Taxes, social subsidies, and the allocation of work time.
American Economic Journal: Macroeconomics, 3 (4).
pp. 1-26.
ISSN 1945-7707
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Abstract
We examine the allocation of hours of work across industrial sectors in OECD countries. We find large disparities across three sector groups, one that produces goods without home substitutes, and two others that have home substitutes but are treated differently by welfare policy. 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. Subsidies increase hours in the subsidized sectors that have home substitutes. We compute these policy effects for 19 OECD countries.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.aeaweb.org/aej/mac/index.php |
| Additional Information: | © 2011 AEA |
| Divisions: | Economics Centre for Economic Performance |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HJ Public Finance |
| JEL classification: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J22 - Time Allocation and Labor Supply |
| Date Deposited: | 07 Nov 2011 11:42 |
| Last Modified: | 11 Dec 2024 23:58 |
| Funders: | Centre for Economic Performance |
| URI: | http://eprints.lse.ac.uk/id/eprint/39262 |
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