labour supply

Hours worked across the world: facts and driving forces

I summarise new facts on hours worked differences across countries and their driving forces. The facts are derived from a comprehensive analysis of micro data sets. First, hours worked are substantially higher in poor than in rich countries. Second, lower hours worked in Europe than in the US can partly be explained by differences in vacation weeks and partly by differences in the demographic structure. Moreover, employment rates tend to be higher and weekly hours worked lower in Western Europe and Scandinavia than in the US, with the opposite being true in Eastern and Southern Europe.

Exploring the importance of behavioural endogeneity for policy projections

Behavioural endogeneity is appealing functionality for any analytical tool designed to explore the implications of public policy alternatives. This study improves the evidence base for choosing between alternative approaches for projecting decision making by exploring two key research questions: (i) how important are the impact effects of policy change, relative to associated incentive effects; and (ii) to what extent can the over-all infuence of behavioural responses to policy change be approximated by labour supply responses alone?

Parameterising the LINDA microsimulation model of benefi…t unit savings and labour supply

This paper describes how the parameters of the Lifetime INcome Distributional Analysis (LINDA) microsimulation model were defined to reflect survey data for the UK. LINDA is a dynamic programming model of savings and labour supply decisions that has been developed for use by UK policy makers. The model is adapted to project the circumstances of the evolving population cross-section forward through time.

LINDA: A dynamic microsimulation model for analysing policy effects on the evolving population cross-section

This paper describes a structural dynamic microsimulation model that generates individual-specifi…c data over a range of demographic and economic characteristics at discrete intervals through-out a simulated time horizon. The model is designed to analyse the distributional implications of policy alternatives over appreciable periods of time. This focus motivates endogenous simulation of savings and labour supply decisions, taking explicit account of uncertainty regarding the evolving decision environment.