Cociuba, Simona; Ueberfeldt, Alexander - University of Western Ontario, CIBC Centre for Human … - 2012
. At the same time, the U.S. labor wedge, measured as the discrepancy between a representative household's marginal rate of … and the labor wedge. Changes in our model's labor wedge are driven by distortionary taxes and non-distortionary factors …, namely the cross-sectional differences in households' labor supply and productivity. We conclude that the labor wedge …