This dissertation decomposes labor supply intothree margins step by step and studies the relativeeffects of two adverse labor market institutes on laborsupply. Labor supply in Europe declined about 30%relative to the US over the past 3 decades. The decline inlabor supply comes from both hours worked per workerand employment. Some studies attributed the declininghours worked to higher labor taxes, while other studiesaccredited high unemployment rates in Europe togenerous non-employment benefits. Fang and Rogerson(2009) is the only exception which incorporates twomargins of labor supply.
Fang and Rogerson (2009) embedded workinghours into Pissarides matching model and found thathigher labor taxes decrease both hours per worker andemployment. The first essay of this dissertation startsfrom Fang and Rogerson (2009) to compares the relativeeffects of increases in labor taxes and non-employmentbenefits on hours per worker and employment andquantifies them.
2 Relative Effects of Labor Taxes and Non-employment Benefits on Hours Worked per Worker and Employment
3 Relative Effects of Labor Taxes on Working Hours and Employment: Role of Mechanisms Shaping Working Hours
4 Effects of Labor Taxes and Unemployment Benefits on Labor Supply in a Search Model with Endogenous Labor Force Participation