To work more or less? The impact of taxes and life satisfaction on the motivation to work in continental and Eastern Europe

Nadirov, Orkhan; Aliyev, Khatai; Dehning, Bruce

dc.title	To work more or less? The impact of taxes and life satisfaction on the motivation to work in continental and Eastern Europe	en
dc.contributor.author	Nadirov, Orkhan
dc.contributor.author	Aliyev, Khatai
dc.contributor.author	Dehning, Bruce
dc.relation.ispartof	Economics and Sociology
dc.identifier.issn	2071-789X Scopus Sources, Sherpa/RoMEO, JCR
dc.date.issued	2017
utb.relation.volume	10
utb.relation.issue	3
dc.citation.spage	266
dc.citation.epage	280
dc.type	article
dc.language.iso	en
dc.publisher	Centre of Sociological Research
dc.identifier.doi	10.14254/2071-789X.2017/10-3/19
dc.relation.uri	http://www.economics-sociology.eu/?531,en_to-work-more-or-less-the-impact-of-taxes-and-life-satisfaction-on-the-motivation-to-work-in-continental-and-eastern-europe
dc.relation.uri	https://digitalcommons.chapman.edu/accounting_articles/8/
dc.subject	motivation to work	en
dc.subject	labor supply	en
dc.subject	labor taxes	en
dc.subject	life satisfaction	en
dc.description.abstract	Using country-level data from 2000-2013, we test the relationship between life satisfaction (measured as how people evaluate their life as a whole rather than their current feelings) and the motivation to work (measured as aggregate hours of work). Our hypothesis is that even after controlling for average labor income tax rates in countries with high and low average hours worked, there is a significant negative association between the motivation to work and life satisfaction. The main findings of this paper are that the increase in the motivation to work per employee comes at the expense of life satisfaction, and differences in average tax rates on labor income cannot account for differences in time allocation. Once life satisfaction is included, the hypotheses of previous neoclassical economic studies are almost irrelevant in determining the response of market hours to higher average tax rates on labor income. In line with our assumption, we find a negative relationship between life satisfaction and the motivation to work in the cross-country examinations. In countries with the highest hours worked (Hungary, Estonia), wealth is generally preferred to leisure and in countries with the lowest hours worked (France, Germany), leisure is preferred to wealth.	en
utb.faculty	Faculty of Management and Economics
dc.identifier.uri	http://hdl.handle.net/10563/1007659
utb.identifier.obdid	43877416
utb.identifier.scopus	2-s2.0-85038964669
utb.identifier.wok	000416103600019
utb.source	j-wok
dc.date.accessioned	2018-01-15T16:31:37Z
dc.date.available	2018-01-15T16:31:37Z
dc.description.sponsorship	TBU [IGA/FaME/2017/018]; Internal Grant Agency of FaME
dc.rights	Attribution 3.0 Unported
dc.rights.uri	https://creativecommons.org/licenses/by/3.0/
dc.rights.access	openAccess
utb.contributor.internalauthor	Nadirov, Orkhan
utb.fulltext.affiliation	Orkhan Nadirov, Tomas Bata University in Zlin, Zlin, Czech Repuplic, E-mail: nadirov@fame.utb.cz Khatai Aliyev, Azerbaijan State Economic University (UNEC), Baku, Azerbaijan, E-mail: khatai.aliyev@unec.edu.az Bruce Dehning, Chapman University, Orange, United States, E-mail: bdehning@chapman.edu
utb.fulltext.dates	Received: December, 2016 1st Revision: March, 2017 Accepted: June, 2017
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utb.fulltext.sponsorship	The authors would like to thank the participants in the 3rd Global Conference on Business, Economics, Management, and Tourism, 26-28 November 2015, Rome, Italy. The present paper is a revised and extended version of the conference proceedings. Moreover, the authors would like to thank the Internal Grant Agency of FaME for providing financial support to carry out this research. Funding was extended through: TBU No. IGA/FaME/2017/018 – “Income tax and the motivation to work”.
utb.wos.affiliation	[Nadirov, Orkhan] Tomas Bata Univ Zlin, Zlin, Czech Republic; [Aliyev, Khatai] Azerbaijan State Econ Univ UNEC, Baku, Azerbaijan; [Dehning, Bruce] Chapman Univ, Orange, CA USA
utb.scopus.affiliation	Tomas Bata University in Zlin, Zlin, Czech Republic; Azerbaijan State Economic University (UNEC), Baku, Azerbaijan; Chapman University, Orange, United States
utb.fulltext.projects	IGA/FaME/2017/018