WHY DO EUROPEANS WORK SO LITTLE?
Market work per person is roughly 10% higher in the United States than in Sweden. However, if we include the work carried out in home production, the total amount of work only differs by 1%. I set up a model and show that differences in policy—mainly taxes—can account for the discrepancy in both labor supply and home production between Sweden and the United States. These results are independent of the elasticity of labor supply.
No Supplementary Data
No Article Media
Document Type: Research Article
Publication date: February 1, 2009