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Estimating Intertemporal Labour Supply Elasticities Using Structural Models

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Bover, Olympia

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Abstract

In this paper, the author proposes empirical models where both the intertemporal substitution elasticity and the elasticities measuring the impact of different wage profiles are estimated taking into account the restrictions derived from utility maximization. She considers models assuming a Stone Geary utility function and also a constant elasticity of substitution across periods function. The data used are a sample of men from the Michigan Panel of Income Dynamics. Her estimates support the low intertemporal substitution elasticity found in previous studies. The estimates for the uncompensated elasticities are also small. Copyright 1989 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 99 (1989)
Issue (Month): 398 (December)
Pages: 1026-39
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Handle: RePEc:ecj:econjl:v:99:y:1989:i:398:p:1026-39

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  1. Olivier Donni, 2006. "On the Identification of Frisch Labor Supplies," IZA Discussion Papers 2130, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Steven J. Haider & David S. Loughran, 2003. "How Important Are Wages to the Elderly? Evidence from the New Beneficiary Data System and the Social Security Earnings Test," Working Papers wp049, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
  3. Manuel Arellano & Olympia Bover, 1990. "La econometría de datos de panel," Investigaciones Economicas, Fundación SEPI, vol. 14(1), pages 3-45, January. [Downloadable!]
  4. Pistaferri, Luigi, 2002. "Anticipated and Unanticipated Wage Changes, Wage Risk, and Intertemporal Labour Supply," CEPR Discussion Papers 3628, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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This page was last updated on 2009-12-8.


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