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Why Do Americans Work So Much More Than Europeans?
Open accessAbstract
Americans now work 50 percent more than do the Germans, French, and Italians.This was not the case in the early 1970s when the Western Europeans worked more than Americans.In this paper, I examine the role of taxes in accounting for the differences in labor supply across time and across countries, in particular, the effect of the marginal tax rate on labor income.The population of countries considered is that of the G-7 countries, which are the major advanced industrial countries.The surprising finding is that this marginal tax rate accounts for the predominance of the differences at points in time and the large change in relative labor supply over time with the exception of the Italian labor supply in the early 1970s.This finding has important implications for policy, in particular for making social security programs solvent.
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Citations
Cited by
Chetty, R., Guren, A., Manoli, D., & Weber, A. (2011) · American Economic Review · doi:10.1257/aer.101.3.471 · Cited by 852
A New Method of Estimating Risk Aversion
Chetty, R. (2006) · American Economic Review · doi:10.1257/aer.96.5.1821 · Cited by 699
Financial Factors in Economic Fluctuations
Christiano, L. J., Motto, R., & Rostagno, M. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1600166 · Cited by 687
(2006) · doi:10.1002/ajim.20373 · Cited by 249
Alesina, A., & Giuliano, P. (2007) · doi:10.3386/w13051 · Cited by 117
Metadata
- Authors
- Prescott, E. C.
- Venue
- Quarterly Review
- Publisher
- Federal Reserve Bank of Minneapolis
- Published
- 2004-07
- Volume
- 28
- Issue
- 1
- ISSN
- 0271-5287 (ISSN-L)
- OpenAlex
- W2162938319
- Cited by
- 1,103
- References
- 0
- FWCI
- 202.60
- Type
- journal article
- Language
- en
- Open access
- diamond
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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