Chakraborty, Indraneel; Stepanchuk, Serhiy; Holter, Hans A. - Nationalekonomiska Institutionen, Uppsala Universitet - 2012
. Motivated by these observations, we develop a life-cycle model with heterogeneous agents, marriage and divorce and use it to … study the impact of two mechanisms on labor supply: (i) dierences in marriage stability and (ii) dierences in tax systems …, and as we replace the U.S. divorce and marriage rates with their European equivalents. We nd that the divorce and tax …