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Comparing Labor Supply Elasticities in Europe and the United States: New Results

Abstract : 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.
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https://hal-amu.archives-ouvertes.fr/hal-01463097
Contributor : Patrice Cacciuttolo <>
Submitted on : Thursday, February 9, 2017 - 1:41:30 PM
Last modification on : Wednesday, August 5, 2020 - 3:08:23 AM

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  • HAL Id : hal-01463097, version 1

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Olivier Bargain, Kristian Orsini, Andreas Peichl. Comparing Labor Supply Elasticities in Europe and the United States: New Results. Journal of Human Resources, University of Wisconsin Press, 2014, 49 (3), pp.723--838. ⟨hal-01463097⟩

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