Taxes, benefits, and careers: Complete versus incomplete markets

• 成果类型: Article
• 署名作者: Ljungqvist, Lars; Sargent, Thomas J.
• 署名单位: Stockholm School of Economics; New York University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2007.10.003
• 发表日期: 2008
• 页码: 98-125
• 关键词: Taxes; benefits; complete markets; incomplete markets; employment lotteries; indivisible labor; human capital; career; retirement; Labor supply elasticity

摘要

An incomplete-market life-cycle model with indivisible labor makes career lengths and human capital accumulation respond to labor tax rates and government supplied non-employment benefits. We compare aggregate and individual outcomes in this individualistic incomplete-market model with those in a comparable collectivist representative-family model with employment lotteries and complete-insurance markets. The incomplete- and complete-market structures assign leisure to different types of individuals who are distinguished by their human capital and age. These microeconomic differences distinguish the two models in terms of how macroeconomic aggregates respond to some types of government supplied non-employment benefits, but remarkably, not to labor tax changes. (C) 2007 Elsevier B.V. All rights reserved.