Distortionary Taxation and Labor Supply
- 1 January 2003
- journal article
- research article
- Published by Project MUSE in Journal of Money, Credit and Banking
- Vol. 35 (3) , 351-373
- https://doi.org/10.1353/mcb.2003.0018
Abstract
This paper examines empirically the effects of distortionary taxation on labor supply using a general equilibrium framework. The long-term relations predicted by the model are derived and tested using data from Canada, United States, Germany, and Japan. In all these countries, labor-tax changes are found to be persistent and to have played an important role in the observed downward trend in hours worked.This publication has 1 reference indexed in Scilit:
- Pitfalls and Opportunities: What Macroeconomists Should Know about Unit RootsNBER Macroeconomics Annual, 1991