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Changes in male labor supply and wages

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  • Paul J. Devereux

Abstract

In the 1980s, both wages and labor supply of poorly educated men fell substantially relative to those of educated men. Some observers have interpreted this positive association between changes in wages and labor supply as reflecting movement along stable labor supply curves. The author casts doubt on this interpretation by showing that the wage elasticity necessary to account, by itself, for the observed labor supply decline would greatly exceed elasticity levels typically found in prior studies. Analysis of Census data shows little relationship between changes in relative wages at the state level and changes in male labor supply. Also, panel data analysis shows no strong correlation between long-run changes in individual hours and wages. The small implied labor supply elasticities suggest that very little of the labor supply changes of men during the 1980s can be related to changes in relative wages. (Author's abstract.) (Free full-text download available at http://digitalcommons.ilr.cornell.edu/ilrreview/.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 56 (2003)
Issue (Month): 3 (April)
Pages: 409-428

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Handle: RePEc:ilr:articl:v:56:y:2003:i:3:p:409-428

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Cited by:
  1. Bargain, Olivier & Orsini, Kristian & Peichl, Andreas, 2012. "Comparing Labor Supply Elasticities in Europe and the US: New Results," IZA Discussion Papers 6735, Institute for the Study of Labor (IZA).
  2. Michiel Evers & Ruud de Mooij & Daniel van Vuuren, 2005. "What explains the variation in estimates of labour supply elasticities?," CPB Discussion Paper 51, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Olivier Donni & Eleonora Matteazzi, 2011. "On the Importance of Household Production in Collective Models : Evidence from U.S. Data," Working Papers 2011-032, Human Capital and Economic Opportunity Working Group.
  4. Abe, Yukiko & Tamada, Keiko, 2010. "Regional patterns of employment changes of less-educated men in Japan: 1990-2007," Japan and the World Economy, Elsevier, vol. 22(2), pages 69-79, March.
  5. repec:dgr:uvatin:2006017 is not listed on IDEAS

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