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The policy determinants of hours worked across OECD countries

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  • Orsetta Causa

Abstract

This article investigates the policy determinants of hours worked among employed individuals in OECD countries, focussing on the impact of taxation, working-time regulations, and other labour and product market policies. It explores the factors underlying cross-country differences in hours worked — in line with previous aggregate approaches — while at the same time it looks more closely at labour force heterogeneity — in the vein of microeconomic labour supply models. The paper shows that policies and institutions have a different impact on working hours of men and women. Firstly, while high marginal taxes create a disincentive to work longer hours for women, their impact on hours worked by men is almost insignificant. Secondly, working-time regulations have a significant impact on hours worked by men, and this impact differs across education categories. Thirdly, other labour and product market policies, in particular stringent employment protection of workers on regular contracts and competition-restraining product market policies, have a negative impact on hours worked by men, over and beyond their impact on employment levels.

Suggested Citation

  • Orsetta Causa, 2009. "The policy determinants of hours worked across OECD countries," OECD Journal: Economic Studies, OECD Publishing, vol. 2009(1), pages 1-39.
    • Handle: RePEc:oec:ecokac:5ksnx2pnf7hf
    DOI: 10.1787/eco_studies-v2009-art1-en
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    Citations

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    Cited by:

    1. Orsetta Causa & Alain de Serres & Nicolas Ruiz, 2015. "Can pro-growth policies lift all boats?: An analysis based on household disposable income," OECD Journal: Economic Studies, OECD Publishing, vol. 2015(1), pages 227-268.
    2. Karin Fischer & Rauf Gönenç & Robert Price, 2011. "Austria: Public Sector Inefficiencies Have Become Less Affordable," OECD Economics Department Working Papers 897, OECD Publishing.
    3. Agustin Velasquez & Svetlana Vtyurina, 2019. "How Does Taxation Affect Hours Worked in EU New Member States?," IMF Working Papers 2019/130, International Monetary Fund.
    4. Klára Kalíšková, 2020. "Tax and transfer policies and the female labor supply in the EU," Empirical Economics, Springer, vol. 58(2), pages 749-775, February.
    5. Goerke, Laszlo & Hillesheim, Inga, 2013. "Relative consumption, working time, and trade unions," Labour Economics, Elsevier, vol. 24(C), pages 170-179.
    6. Kraft, Holger & Munk, Claus & Seifried, Frank Thomas & Steffensen, Mogens, 2014. "Consumption and wage humps in a life-cycle model with education," SAFE Working Paper Series 53, Leibniz Institute for Financial Research SAFE.
    7. Kalíšková, Klára, 2015. "Tax and transfer policies and female labor supply in the EU," EUROMOD Working Papers EM1/15, EUROMOD at the Institute for Social and Economic Research.
    8. Georges A. Tanguay & Ugo Lachapelle, 2019. "Potential Impacts of Telecommuting on Transportation Behaviours, Health and Hours Worked in Québec," CIRANO Project Reports 2019rp-07, CIRANO.
    9. Orsetta Causa & Alain de Serres & Nicolas Ruiz, 2015. "Structural reforms and income distribution," OECD Economic Policy Papers 13, OECD Publishing.
    10. Laszlo Goerke & Sabrina Jeworrek & Markus Pannenberg, 2015. "Trade union membership and paid vacation in Germany," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.

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