BazEkon - Biblioteka Główna Uniwersytetu Ekonomicznego w Krakowie

BazEkon home page

Meny główne

Autor
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)
Tytuł
To Work more or Less? The Impact of Taxes and Life Satisfaction on the Motivation to Work in Continental and Eastern Europe
Źródło
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
Uwagi
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"
Kraj/Region
Europa
Europe
Abstrakt
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
Pokaż
Bibliografia
Pokaż
  1. Alesina, A., Glaeser, E., & Sacerdote, B. (2005). Work and leisure in the United States and Europe: why so different? NBER macroeconomics annual, 20, 1-64.
  2. Bentolila, S., & Bertola, G. (1990). Firing costs and labor demand: how bad is eurosclerosis? The Review of Economic Studies, 57(3), 381-402.
  3. Berger, T., & Heylen, F. (2011). Differences in hours worked in the OECD: institutions or fiscal policies? Journal of Money, Credit and Banking, 43(7), 1333-1369.
  4. Blanchard, O. J., & Summers, L. H. (1986). Hysteresis and the European unemployment problem. NBER macroeconomics annual, 1, 15-78.
  5. Blanchard, O., & Jimeno, J. F. (1995). Structural unemployment: Spain versus Portugal. The American Economic Review, 85(2), 212-218.
  6. Blumkin, T., Ruffle, B. J., & Ganun, Y. (2012). Are income and consumption taxes ever really equivalent? Evidence from a real-effort experiment with real goods. European Economic Review, 56(6), 1200-1219.
  7. Blundell, R., & MaCurdy, T. (1999). Labor supply: A review of alternative approaches. Handbook of labor economics, 3, 1559-1695.
  8. Blundell, R., & Shephard, A. (2011). Employment, hours of work and the optimal taxation of low-income families. The Review of Economic Studies, rdr034.
  9. Breitung, J. (2001). The local power of some unit root tests for panel data. In: Nonstationary panels, panel cointegration, and dynamic panels (pp. 161-177). Emerald Group Publishing Limited.
  10. Causa, O. (2009). The policy determinants of hours worked across OECD countries. OECD Journal. Economic Studies, 2009(1), 9.
  11. Chen, B. L., Hsu, M., & Lai, C. F. (2015). Relative Effects of Labor Taxes and Unemployment Benefits on Hours Worked Per Worker and Employment. Pacific Economic Review, 20(2), 282-309.
  12. Chetty, R., Guren, A., Manoli, D., Weber, A., Sargent, T. J., Rogerson, R., ... & Yagan, D. (2011). Are Micro and Macro Labor Supply Elasticities Consistent? A. In: Review of Evidence on the Intensive and Extensive Margins, American Economic Review: Papers and Proceedings, 101(3), 471-475.
  13. Conesa, J. C., & Kehoe, T. J. (2005). Productivity, taxes and hours worked in Spain, 1970-2003. Manuscript, University of Minnesota.
  14. Davis, S. J., & Henrekson, M. (2004). Tax effects on work activity, industry mix and shadow economy size: Evidence from rich-country comparisons (No. w10509). National Bureau of Economic Research.
  15. DICE (2017). Labor Market. Online available at http://www.cesifo- group.de/ifoHome/facts/DICE/DICE-Search.html?DICEsearch.facet_isArchived=false.
  16. Eurostat (2017). Hours worked per week of full-time employment. http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00 071&plugin=1.
  17. European Commission (2017). Eurobarometer Interactive. Life satisfaction. Online available at http://ec.europa.eu/commfrontoffice/publicopinion/index.cfm/Chart/index.
  18. Faggio, G., & Nickell, S. (2007). Patterns of work across the OECD. The Economic Journal, 117(521), F416-F440.
  19. Gollin, D. (2002). Getting income shares right. Journal of political Economy, 110(2), 458-474. Hallam, A., & Weber, E. J. (2007). Labor taxes and work hours in Australia.
  20. Harriss, L. (1985). Taxation, Incentives and Disincentives, and Human Motivation. American Journal of Economics and Sociology, 44(2), 129-136.
  21. Hasanov, F., Bulut, C., & Suleymanov, E. (2017). Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries. Renewable and Sustainable Energy Reviews, 73, 369-386.
  22. Huberman, M. (2004). Working hours of the world unite? New international evidence of worktime, 1870-1913. Journal of Economic History, 64(4), 964-1001.
  23. Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of econometrics, 115(1), 53-74.
  24. Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of econometrics, 108(1), 1-24.
  25. Lewis, A. (1982). The psychology of taxation. Blackwell.
  26. Lindbeck, A. (1982). Tax effects versus budget effects on labor supply. Economic inquiry, 20(4), 473-489.
  27. Ljungqvist, L., Sargent, T. J., Blanchard, O., & Prescott, E. C. (2006). Do Taxes Explain European Employment? Indivisible Labor, Human Capital, Lotteries, and Savings (with Comments and Discussion). NBER macroeconomics annual, 21, 181-246.
  28. Ljungqvist, L., & Sargent, T. J. (2008). Taxes, benefits, and careers: Complete versus incomplete markets. Journal of Monetary Economics, 55(1), 98-125.
  29. Maddala, G. S., & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and statistics, 61(S1), 631-652.
  30. McGrattan, E. R., & Rogerson, R. (2004). Changes in hours worked, 1950-2000. Federal Reserve Bank of Minneapolis Quarterly Review, 28(1), 14-33.
  31. Maslow, A. H. (1954). The instinctoid nature of basic needs. Journal of Personality, 22(3), 326- 347.
  32. Meghir, C., & Phillips, D. (2010). Labor supply and taxes. Dimensions of Tax Design: The Mirrlees Review, 202-74.
  33. Mendoza, E. G., Razin, A., & Tesar, L. L. (1994). Effective tax rates in macroeconomics: Cross-country estimates of tax rates on factor incomes and consumption. Journal of Monetary Economics, 34(3), 297-323.
  34. McDaniel, C. (2007). Average tax rates on consumption, investment, labor and capital in the OECD 1950-2003. Manuscript, Arizona State University, 1960-2004.
  35. Mocan, N. H., & Pogorelova, L. (2015). Why work more? The impact of taxes, and culture of leisure on labor supply in Europe (No. w21297). National Bureau of Economic Research.
  36. Nadirov, O., & Aliyev, K. (2016). The motivation to work, Labor Income Taxes and Life Satisfaction: Hungary, Estonia, Continental Europe and the United States. Procedia Economics and Finance, 39, 373-379.
  37. Nickell, S. (1997). Unemployment and labor market rigidities: Europe versus North America. The Journal of Economic Perspectives, 11(3), 55-74.
  38. Nickell, S., Nunziata, L., Ochel, W., & Quintini, G. (2003). The Beveridge Curve, Unemployment and Wages in the OECD from the 1960s to the 1990s (pp. 394-431). Princeton: Princeton University Press.
  39. Nicoletti, G., & Scarpetta, S. (2001, June). Interactions between product and labor market regulations: do they affect employment? Evidence from OECD countries. In: Conference on "Labor Market Institutions and Economic Outcomes." Lisbon: Bank of Portugal.
  40. OECD (2008). Going for Growth, Paris.
  41. OECD (2017a). OECD statistics - Average usual weekly hours worked on the main job. Online available at https://stats.oecd.org/Index.aspx?DataSetCode = ANHRS.
  42. OECD (2017b). OECD statistics - Average annual hours actually worked per worker. Online available at https://stats.oecd.org/Index.aspx?DataSetCode = ANHRS.
  43. OECD (2017c). OECD statistics - National Accounts at Glance. Online available at https://stats.oecd.org/Index.aspx?DataSetCode = NAAG.
  44. Ohanian, L., Raffo, A., & Rogerson, R. (2008). Long-term changes in labor supply and taxes: Evidence from OECD countries, 1956-2004. Journal of Monetary Economics, 55(8), 1353-1362.
  45. Olovsson, C. (2009). Why do Europeans work so little? International Economic Review, 50(1), 39-61.
  46. Prescott, E. C. (2002). Prosperity and depression. The American Economic Review, 92(2), 1-15.
  47. Prescott, E. C. (2004). Why do Americans work so much more than Europeans? (No. w10316). National Bureau of Economic Research.
  48. Rogerson, R. (2007). Taxation and market work: is Scandinavia an outlier? Economic theory, 32(1), 59-85.
  49. Rogerson, R. (2008). Structural transformation and the deterioration of European labor market outcomes. Journal of political Economy, 116(2), 235-259.
  50. Stuart, C. E. (1981). Swedish tax rates, labor supply, and tax revenues. Journal of Political Economy, 89(5), 1020-1038.
  51. Veblen, T. (1899). The theory of the leisure class: An economic study in the evolution of institutions. Macmillan. Orkhan Nadirov, Khatai Aliyev, Bruce Dehning
Cytowane przez
Pokaż
ISSN
2071-789X
Język
eng
URI / DOI
http://dx.doi.org/10.14254/2071-789X.2017/10-3/19
Udostępnij na Facebooku Udostępnij na Twitterze Udostępnij na Google+ Udostępnij na Pinterest Udostępnij na LinkedIn Wyślij znajomemu