Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-19T06:07:30.520Z Has data issue: false hasContentIssue false
  • English
  • Français

THE EVOLUTION OF TAXES AND HOURS WORKED IN AUSTRIA, 1970–2005

Published online by Cambridge University Press:  22 May 2014

John T. Dalton
John T. Dalton*
Affiliation:
Wake Forest University
*
Address correspondence to: John T. Dalton, Department of Economics, Kirby Hall, Wake Forest University, Box 7505, Winston-Salem, NC 27109, USA; e-mail: [email protected].
Get access Rights & Permissions [Opens in a new window]

Abstract

Aggregate hours worked per working-age person decreased in Austria by 25% from 1970 to 2005. During the same time period, taxes increased, particularly the effective marginal tax rate on labor income. Using a standard general equilibrium growth model with taxes, I quantitatively assess the role played by the evolution of taxes in the evolution of hours worked in Austria. The model accounts for 76% of the observed decrease in hours worked per working-age person. My results are in line with other studies, which find taxes play an important role in explaining aggregate hours worked.

Keywords

TaxesLabor SupplyGrowth AccountingDynamic General Equilibrium
Type
Articles
Information
Macroeconomic Dynamics , Volume 19 , Issue 8 , December 2015 , pp. 1800 - 1815
Copyright
Copyright © Cambridge University Press 2014 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Cicek, Deniz and Elgin, Ceyhun (2011) Not-quite-great depressions of Turkey: A quantitative analysis of economic growth over 1968–2004. Economic Modelling 28, 2691–2700.CrossRefGoogle Scholar
Conesa, Juan C. and Kehoe, Timothy J. (2008) Productivity, Taxes and Hours Worked in Spain: 1970–2005. Working paper, University of Minnesota.Google Scholar
Conesa, Juan C., Kehoe, Timothy J., and Ruhl, Kim J. (2007) Modeling great depressions: The depression in Finland in the 1990s. In Kehoe, Timothy J. and Prescott, Edward C. (eds.), Great Depressions of the Twentieth Century, pp. 427–475. Minneapolis, MN: Federal Reserve Bank of Minneapolis.CrossRefGoogle Scholar
Gollin, Douglas (2002) Getting income shares right. Journal of Political Economy 110, 458–474.CrossRefGoogle Scholar
Hofer, Helmut and Koman, Reinhard (2006) Social security and retirement incentives in Austria. Empirica 33, 285–313.CrossRefGoogle Scholar
Kehoe, Timothy J. and Prescott, Edward C. (2002) Great depressions of the 20th century. Review of Economic Dynamics 5, 1–18.CrossRefGoogle Scholar
Kehoe, Timothy J. and Prescott, Edward C. (eds.) (2007) Great Depressions of the Twentieth Century. Minneapolis, MN: Federal Reserve Bank of Minneapolis.CrossRefGoogle Scholar
McDaniel, Cara (2007) Average Tax Rates on Consumption, Investment, Labor and Capital in the OECD 1950–2003. Working paper, Arizona State University.Google Scholar
Mendoza, Enrique G., Razin, Assaf, and Tesar, Linda L. (1994) Effective tax rates in macroeconomics: Cross-country estimates of tax rates on factor incomes and consumption. Journal of Monetary Economics 34, 297–323.CrossRefGoogle Scholar
Ohanian, Lee, Raffo, Andrea, and Rogerson, Richard (2008) Long-term changes in labor supply and taxes: Evidence from OECD countries, 1956–2004. Journal of Monetary Economics 55, 1353–1362.CrossRefGoogle Scholar
Prescott, Edward C. (2002) Richard T. Ely Lecture: Prosperity and depression. American Economic Review Papers and Proceedings 92, 1–15.CrossRefGoogle Scholar
Prescott, Edward C. (2004) Why do Americans work so much more than Europeans? Federal Reserve Bank of Minneapolis Quarterly Review 28, 2–13.Google Scholar
Prescott, Edward C., Richard Rogerson, and Johanna Wallenius (2009) Lifetime aggregate labor supply with endogenous workweek length. Review of Economic Dynamics 12, 23–36.CrossRefGoogle Scholar