Conventional pension systems suffer from a design defect which makes them financially unsustainable, and a source of inefficiency for the economy as a whole. The paper outlines a second-best policy which includes a public pension system made up of two parallel schemes, a Bismarckian one allowing...

The paper re-examines the idea that a family can be viewed as a community governed by a self-enforcing constitution, and extends existing results in two directions. First, it identi?es circumstances in which a constitution is renegotiation-proof. Second, it introduces parental altruism. The...

This paper proposes an endogenous growth model in which gender inequality in employment has an important role in explaining different development dimensions such as socio-political participation, educational attainments, and working hours, in developed countries. Starting from a theoretical...

The simulations of tax-benefit reforms with labour supply models often implicitly assume perfectly elastic labour demand, an assumption that may lead to unrealistic results. In this study we attempt to address this limitation and show how the interaction between labour supply and labour demand...

The purpose of this paper is to present an exercise where we identify optimal income tax rules according to various social welfare criteria, keeping fixed the total net tax revenue. Empirical applications of optimal taxation theory have typically adopted analytical expressions for the optimal...

This paper analyzes the properties of a particular sectoral labor supply model developed and estimated in Dagsvik and Strøm (2006). Agents have preferences over sectors and latent job attributes. Moreover, the model allows for a representation of the individual choice sets of feasible jobs in...

A female labor supplied model including sectoral choice, estimated on data from Norway, 1994 has been used in simulation to yield labor supply elasticities. We find that these elasticities are declining with the wage level of the women. The overall elasticities are rather small, but these small...

Aggregate evidence has revealed a significant increase in women’s labour market participation (especially among married women) and a decline in male participation, both in Italy and in all the other OECD countries. In this paper, we empirically test the relationship between the education and...

In a recent paper, Benjamin and Kimhi (2006) argued that using multivariate probit for analysing off-farm participation of farm couples suffers from a theoretical inconsistency. This note tries to clarify this issue, and illustrates the joint participation rules based on reservation wages of...

The importance parents give to time spent with their children for their future behavioural and cognitive development deeply affected the patterns of time allocation of both working and non-working parents in all developed countries in the last decades. We compare the two existing waves of the...