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Policy analysis in a matching model with intensive and extensive margins

Author: Lei Fang; Richard Donald Rogerson; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2007.
Series: Working paper series (National Bureau of Economic Research), no. 13007.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
The large differences in hours of work across industrialized countries reflect large differences in both employment to population ratios and hours per worker. We imbed the canonical model of labor supply into a standard matching model to produce a model in which both the intensive and extensive margins are operative. We then assess the implications of several policies for changes along the two margins. Firing taxes  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Lei Fang; Richard Donald Rogerson; National Bureau of Economic Research.
OCLC Number: 122333357
Description: 1 online resource (1 volume).
Series Title: Working paper series (National Bureau of Economic Research), no. 13007.
Responsibility: Lei Fang, Richard Rogerson.

Abstract:

The large differences in hours of work across industrialized countries reflect large differences in both employment to population ratios and hours per worker. We imbed the canonical model of labor supply into a standard matching model to produce a model in which both the intensive and extensive margins are operative. We then assess the implications of several policies for changes along the two margins. Firing taxes and entry barriers both lead to changes in hours and employment in opposite directions, while tax and transfer policies lead to decreases in both employment and hours per worker.

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