Chetty, Raj; Friedman, John N.; Olsen, Tore; … - Centre for Applied Microeconometrics (CAM), Økonomisk … - 2010
We show that the effects of taxes on labor supply are shaped by interactions between adjustment costs for workers and hours constraints set by firms. We develop a model in which firms post job offers characterized by an hours requirement and workers pay search costs to find jobs. In this model,...