Taxes and Labor Supply: Portugal, Europe, and the United States (Conference Version)

III Conference Portuguese Economic Development in the European Context, Banco de Portugal

26 Pages Posted: 7 Mar 2007 Last revised: 28 Sep 2017

See all articles by Andre C. Silva

Andre C. Silva

Nova School of Business and Economics

Multiple version iconThere are 4 versions of this paper

Date Written: November 1, 2005

Abstract

I relate hours worked with taxes on consumption and labor. I propose a model and compare its predictions for Portugal, France, Spain, United Kingdom and United States. Hours per worker in Portugal decreased from 35.1 in 1986 to 32.6 in 2001. With only the parameters and the taxes for Portugal, the model predicts the hours worked in 2001 with an error of only 12 minutes from the actual hours. Across countries, most predictions differ from the data by one hour or less. The model is able to explain the trend in hours with only the changes in taxes.

Keywords: labor supply, consumption tax, labor income tax

JEL Classification: E6, H3

Suggested Citation

Silva, Andre C., Taxes and Labor Supply: Portugal, Europe, and the United States (Conference Version) (November 1, 2005). III Conference Portuguese Economic Development in the European Context, Banco de Portugal, Available at SSRN: https://ssrn.com/abstract=968951 or http://dx.doi.org/10.2139/ssrn.968951

Andre C. Silva (Contact Author)

Nova School of Business and Economics ( email )

Campus de Carcavelos
Carcavelos, 2775-405
Portugal

HOME PAGE: http://sites.google.com/view/andredecastrosilva

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