New Report says Low Tax Rates And High Divorce Rates Help Explain Why Americans Work More Than Europeans

hcsp.jpgWhy do Americans work 30 percent more than Europeans?

It has a lot to do with America’s lower tax rates and higher divorce rates, which combined account for 58 percent of the difference in hours worked, according to a new study. (H/t The New York Times’ Binyamin Appelbaum.)
Men in the U.S. work more than men in Europe in part because European tax rates are largely higher and more progressive than American tax rates. In other words, in Europe, the more money a worker makes, the more they pay in taxes, which may reduce an employee’s incentive to work more, the researchers argue.
As for women, American women work more than women in Europe in part because the divorce rate is higher in the U.S., the study found. The increased likelihood of divorce in America accounts for 24 percent of the difference in hours worked among women. The study’s authors argue that since the guarantee of a husband’s income is less stable in the U.S., American women are pressured to gain work experience to be able to survive on their own.
Source: The Huffington Post |  Bonnie Kavoussi