RT Journal Article
SR Electronic
T1 Comparing Labor Supply Elasticities in Europe and the United States
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 723
OP 838
DO 10.3368/jhr.49.3.723
VO 49
IS 3
A1 Bargain, Olivier
A1 Orsini, Kristian
A1 Peichl, Andreas
YR 2014
UL http://jhr.uwpress.org/content/49/3/723.abstract
AB We suggest the first large-scale international comparison of labor supply elasticities for 17 European countries and the United States using a harmonized empirical approach. We find that own-wage elasticities are relatively small and more uniform across countries than previously considered. Nonetheless, such differences do exist, and are found not to arise from different tax-benefit systems, wage/hour levels, or demographic compositions across countries, suggesting genuine differences in work preferences across countries. Furthermore, three other findings are consistent across countries: The extensive margin dominates the intensive margin; for singles, this leads to larger responses in low-income groups; and income elasticities are extremely small.