The elasticity of substitution between capital and labor features prominently in several areas of economic research. However, a consensus estimate remains elusive. We develop an estimation strategy that filters panel data in an original way and avoids several pitfalls - difficult-to-specify...

Putting a limit on the duration of unemployment benefits tends to introduce a spikeʺ 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....

We study the allocation of time in the U.S. and in Europe during 1960-2010. We find that market hours decreased and leisure increased most in France and least in the U.S. Contrary to what standard theory predicts, home hours changed comparatively little. We show that the growth model with home...

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 studies identifies the timing of work hours that cannot be...

This paper studies the life-cycle effects of favorable marginal tax treatment of older workers on their optimal life cycle labor supply, retirement timing, and savings. I develop a structural model in continuous time where the life-cycle of a representative agent is divided into three distinct...

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...

Why are average hours worked per adult lower in rich countries than in poor countries? We consider two natural explanations: income effects in preferences, in which leisure becomes more valuable when income rises, and distortionary tax systems, which are more prevalent in richer countries. To...