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Diane Publishing Books
Work and Taxes: Allocation of Time in OECD Countries: A Reprint from the Federal Reserve Bank of Kansas “Economic Review”
Lee Ohanian (au); Andrea Raffo (au); Richard Rogerson (au)
Long-run changes in total hrs. of work (HoW) in OECD countries exceed the variation of hrs. worked over the bus. cycle in a representative country by almost an order of magnitude. If understanding changes in HoW for the magnitude of bus. cycle fluctuations is an important policy concern, then understanding the sources of these trend differences is also crucial. The authors describe the steep decline in avg. hrs. worked & the large variation across countries in the magnitude of this decline. Changes in labor taxes account for a large share of the trend differences. Countries with high tax rates devote less time to market work, but more time to home activities, such as cooking & cleaning, which is much stronger for females than for males. Illus.
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