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Europeans work much less than Americans. Some studies claim this is due to high taxes in Europe, which would benefit by … that Americans would benefit by reducing work time to Europe's level. Empirical and experimental studies show utility falls … as other people's income rises. Due to its historical experience, Europe is able to internalize this and other negative …
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Europeans have worked less than Americans since the 1970s. In this paper, we quantify the relative importance of the extensive and intensive margins of aggregate hours of market work on the observed differences. Our counterfactual exercises show that the two dimensions of the extensive margin,...
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We build a life cycle model of labor supply that incorporates changes along both the intensive and extensive margin and use it to assess the consequences of changes in tax and transfer policies on equilibrium hours of work. We find that changes in taxes have large aggregate effects on hours of...
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