Leisure externalities across households have important implications for labor market regulations, but have proven very difficult to identify. This paper exploits the unique features of school holidays and paid leave regulations in France to show that exogenous increases in the amount of leisure time enjoyed by workers living with children induce very significant increases in the demand for leisure of workers living in other households. We also provide evidence that these cross effects are driven by complementarities in non-market-time rather than workplace norms or workplace externalities.

A general public version of this research was published here (in French).

R&R at Labour Economics
This paper provides new insights on the effect of inheritance receipt on retirement. We build on lifelong information on inheritances received and labor market transitions available for respondents of the French Wealth Survey. This feature allows us to compare current retirement rates among current and future inheritors. Chances of current retirement are 40% higher among current inheritors than among individuals who will inherit in the next two years, but there is substantial heterogeneity in this effect across socio-demographic groups. The effect is also stronger for individuals with a higher risk aversion, which we interpret with a simple theoretical model.

This research was part of an audit of the French Court of Auditors on the value-added tax.

A general public version of this research was published here (in French).
Media coverage: Le Figaro, Libération, France Inter.