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.

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Additional Information

ISSN
1538-4616
Print ISSN
0022-2879
Pages
pp. 351-373
Launched on MUSE
2003-06-03
Open Access
No
Archive Status
Archived 2007
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