Taxpayers respond to incentives

Economists Lee Ohanian. Andrea Raffo, and Richard Rogerson have a new paper on "Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004." They conclude

taxes can account for much of the variation in hours worked both over time and across countries.

For another point of view, see Alberto Alesina, Edward L. Glaeser, and Bruce Sacerdote, who believe that regulations pushed by unions, not taxes, are the reason Europeans work fewer hours than Americans.