CORDIS Project
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This project develops a theory of labor supply decisions among diverse individuals to better understand macroeconomic labor supply elasticity. It explores how taxation influences labor supply differences and employment volatility, as well as retirement decisions in response to social security reforms.
The aggregate response of labour supply to business cycle shocks is a central element in macroeconomic analysis and is the object of an important debate among economists.
This debate matters as our understanding of the business cycle data and of the consequence of tax policies rely critically on the elasticity of aggregate labour supply.
Because the standard macroeconomic analysis is based on a theory of a single (representative) individual, this analysis cannot distinguish between individual an…
IMDEA Social Science Institute
INSTITUTO MADRILENO DE ESTUDIOS AVANZADOS FUNDACION
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