Three Margins of Labor Supply and Policy Analysis 勞動供給三維與政策分析(電子書)

This dissertation decomposes labor supply into three margins step by step and studies the relative effects of two adverse labor market institutes on labor supply. Labor supply in Europe declined about 30% relative to the US over the past 3 decades. The decline in labor supply comes from both hours worked per worker and employment. Some studies attributed the declining hours worked to higher labor taxes, while other studies accredited high unemployment rates in Europe to generous non-employment benefits. Fang and Rogerson (2009) is the only exception which incorporates two margins of labor supply. Fang and Rogerson (2009) embedded working hours into Pissarides matching model and found that higher labor taxes decrease both hours per worker and employment. The first essay of this dissertation starts from Fang and Rogerson (2009) to compares the relative effects of increases in labor taxes and non-employment benefits on hours per worker and employment and quantifies them.