We study the usually assumed trade-off between income and leisure in labor supply decisions using comprehensive German panel data. We compare non-employed individuals after plant closures with employed people regarding both income and time use as well as their subjective perceptions of these two...

We estimate a dynamic discrete choice model of Registered Nurses' labor supply with random terms. A distinguished feature of our model is that random terms are correlated over time and jobs (habit persistence). Past options and not only the past optimal choices matter for the current choices....

In the simple Allingham-Sandmo portfolio model of tax evasion an expected utility maximizer will cheat more than what is estimated in empirical studies. Two main types of explanation have been suggested as solutions to this puzzle: (1) Tax payers act according to some non-expected utility...

We present a non-cooperative model of a family's time allocation between work and a home-produced public good, and examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to overprovision of the public good, spouses' failure to...

A large fraction of domestically abused women report that their partners interfere with their participation in education and employment. As of yet, mainstream economics has not dealt in any systematic way with this phenomenon and its implications for welfare policy. This paper puts forward a...

The present paper develops a general equilibrium model with overlapping generations and endogenous fertility in order to analyze the interaction between public policy and household labor supply and fertility decisions. The model's benchmark equilibrium reflects the current family policy...

This study examines if couples time their work hours and how this work timing influences child care demand and the time that spouses jointly spend on leisure, household chores and child care. By using a innovative matching strategy, this study identifies the timing of work hours that cannot be...

Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labor costs without reducing total cost or labor income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labor supply is excessive due to...

This paper explores the implications of gender-based income taxation in a non-cooperative model of a couple's time allocation between market work and providing a household public good. We find that the optimal structure of differential taxation by gender is solely determined by spouses' relative...

Putting a limit on the duration of unemployment benefits tends to introduce a “spike” in the job finding rate shortly before benefits are exhausted. Current theories explain this spike from workers' behavior. We present a theoretical model in which also the nature of the job matters....