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Nadirov Orkhan (Tomas Bata University in Zlin, Czech Repuplic), Aliyev Khatai (Azerbaijan State Economic University (UNEC), Baku, Azerbaijan), Dehning Bruce (Chapman University, Orange, United States)
To Work more or Less? The Impact of Taxes and Life Satisfaction on the Motivation to Work in Continental and Eastern Europe
Economics & Sociology, 2017, vol. 10, nr 3, s. 266-280, rys., tab., bibliogr. 51 poz.
Słowa kluczowe
Motywacja do pracy, Podaż pracy, Opodatkowanie pracy, Jakość życia, Dochody z pracy
Work motivation, Labour supply, Labour taxation, Quality of life, Labour income
Klasyfikacja JEL: H20, J01, J29
summ., The present paper is a revised and extended version of the conference proceedings. Moreover, the authors would like to thank the Internal Grant Agency of FaME for providing financial support to carry out this research. Funding was extended through: TBU No. IGA/FaME/2017/018 - "Income tax and the motivation to work"
Using country-level data from 2000-2013, we test the relationship between life satisfaction (measured as how people evaluate their life as a whole rather than their current feelings) and the motivation to work (measured as aggregate hours of work). Our hypothesis is that even after controlling for average labor income tax rates in countries with high and low average hours worked, there is a significant negative association between the motivation to work and life satisfaction. The main findings of this paper are that the increase in the motivation to work per employee comes at the expense of life satisfaction, and differences in average tax rates on labor income cannot account for differences in time allocation. Once life satisfaction is included, the hypotheses of previous neoclassical economic studies are almost irrelevant in determining the response of market hours to higher average tax rates on labor income. In line with our assumption, we find a negative relationship between life satisfaction and the motivation to work in the cross-country examinations. In countries with the highest hours worked (Hungary, Estonia), wealth is generally preferred to leisure and in countries with the lowest hours worked (France, Germany), leisure is preferred to wealth. (original abstract)
Pełny tekst
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