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Testing the predictive value of subjective labour supply data

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Author Info
Rob Euwals (Department of Economics, Mannheim University, 68131 Mannheim, Germany)
Bertrand Melenberg (Tilburg University, PO Box 90153, 5000 LE Tilburg, the Netherlands)
Arthur van Soest (Tilburg University, PO Box 90153, 5000 LE Tilburg, the Netherlands)

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Abstract

Empirical implementation of labour supply theories is usually based on actual hours of work. This requires strong assumptions on the impact of labour demand. To avoid these assumptions, subjective data on desired labour supply can be used. In this paper we investigate whether respondents' answers to survey questions on the desired number of working hours contain additional information on the respondents' preferences. Using panel data for the Netherlands, we analyse whether deviations between desired hours and actual hours of work help to predict future changes in the respondents' actual working hours. We use parametric and recently developed non-parametric tests. The results show that information on desired working hours is helpful in explaining female labour supply. For males the evidence is mixed. © 1998 John Wiley & Sons, Ltd.

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File URL: http://qed.econ.queensu.ca:80/jae/1998-v13.5/
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 13 (1998)
Issue (Month): 5 ()
Pages: 567-585
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:jae:japmet:v:13:y:1998:i:5:p:567-585

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Blundell, Richard William & Ham, John & Meghir, Costas, 1987. "Unemployment and Female Labour Supply," CEPR Discussion Papers 149, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July. [Downloadable!] (restricted)
  3. repec:cup:etheor:v:8:y:1992:i:4:p:452-75 is not listed on IDEAS
  4. Kahn, Shulamit & Lang, Kevin, 1991. "The Effect of Hours Constraints on Labor Supply Estimates," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 605-11, November. [Downloadable!] (restricted)
    Other versions:
  5. Whang, Yoon-Jae & Andrews, Donald W. K., 1993. "Tests of specification for parametric and semiparametric models," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 277-318. [Downloadable!] (restricted)
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  6. Newey, Whitney K., 1994. "Kernel Estimation of Partial Means and a General Variance Estimator," Econometric Theory, Cambridge University Press, vol. 10(02), pages 1-21, June. [Downloadable!]
  7. Konakov, V. D. & Piterbarg, V. I., 1984. "On the convergence rate of maximal deviation distribution for kernel regression estimates," Journal of Multivariate Analysis, Elsevier, vol. 15(3), pages 279-294, December. [Downloadable!] (restricted)
  8. Euwals, Rob & van Soest, Arthur, 1999. "Desired and actual labour supply of unmarried men and women in the Netherlands," Labour Economics, Elsevier, vol. 6(1), pages 95-118, March. [Downloadable!] (restricted)
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  9. repec:cup:etheor:v:10:y:1994:i:2:p:233-53 is not listed on IDEAS
  10. Aït-Sahalia, Yacine. & Bickel, Peter J. & Stoker, Thomas M., 1994. "Goodness-of-fit tests for regression using kernel methods," Working papers 3747-94., Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
  11. Bierens, Herman J, 1990. "A Consistent Conditional Moment Test of Functional Form," Econometrica, Econometric Society, vol. 58(6), pages 1443-58, November. [Downloadable!] (restricted)
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  12. Ball, Laurence, 1990. "Intertemporal Substitution and Constraints on Labor Supply: Evidence from Panel Data," Economic Inquiry, Oxford University Press, vol. 28(4), pages 706-24, October.
  13. Charlier, E., 1994. "A smoothed maximum score estimator for the binary choice panel data model with individual fixed effects and applications to labour force participation," Discussion Paper 81, Tilburg University, Center for Economic Research. [Downloadable!]
  14. P. Lavergne & Q. Vuong, . "Nonparametric Significance Testing," Sonderforschungsbereich 373 1998-75, Humboldt Universitaet Berlin.
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  15. Biddle, Jeff E, 1988. "Intertemporal Substitution and Hours Restrictions," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 347-51, May. [Downloadable!] (restricted)
  16. Dickens, William T & Lundberg, Shelly J, 1993. "Hours Restrictions and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 169-92, February. [Downloadable!] (restricted)
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  17. Rilstone, Paul, 1991. "Nonparametric Hypothesis Testing with Parametric Rates of Convergence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(1), pages 209-27, February. [Downloadable!] (restricted)
  18. Ilmakunnas, Seija & Pudney, Stephen, 1990. "A model of female labour supply in the presence of hours restrictions," Journal of Public Economics, Elsevier, vol. 41(2), pages 183-210, March. [Downloadable!] (restricted)
  19. Joseph G. Altonji & Christina H. Paxson, 1990. "Labor Supply, Hours Constraints and Job Mobility," NBER Working Papers 3474, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Francis Green & Nicholas Tsitsianis, 2004. "Can the Changing Nature of Jobs Account for National Trends in Job Satisfaction?," Studies in Economics 0406, Department of Economics, University of Kent. [Downloadable!]
  2. repec:ese:iserwp: is not listed on IDEAS
  3. Euwals, R., 1997. "Hours constraints within and between jobs," Discussion Paper 64, Tilburg University, Center for Economic Research. [Downloadable!]
  4. Fouarge Didier & Baaijens Christine, 2009. "Job Mobility and hours of work: the effect of Dutch legislation," Research Memoranda 004, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
  5. Nadia Steiber, 2008. ""How Many Hours Would you Want to Work a Week?": Job Quality and the Omitted Variables Bias in Labour Supply Models," SOEPpapers 121, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  6. Borghans Lex & Golsteyn Bart & Heckman James & Meijers Huub, 2009. "Gender Differences in Risk Aversion and Ambiguity Aversion," Research Memoranda 005, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
    Other versions:
  7. Rob Euwals, 1999. "Female Labour Supply, Flexibility of Working Hours, and Job Mobility in the Netherlands," IZA Discussion Papers 83, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Euwals, Rob, 2001. "The Predictive Value of Subjective Labour Supply Data: A Dynamic Panel Data Model with Measurement Error," IZA Discussion Papers 400, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Henneberger, Fred & Sousa-Poza, Alfonso, 2002. "Beweggründe und Determinanten zwischenbetrieblicher Mobilität: Die Schweiz in einer internationalen Perspektive (Motives and determinants of job-to-job mobility : Switzerland in an international per," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(2), pages 205-231. [Downloadable!]
  10. Euwals, Rob, 2000. "Female Labour Supply, Flexibility Of Working Hours, And Job Mobility," CEPR Discussion Papers 2419, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  11. Rob Euwals, 2002. "The Predictive Value of Subjective Labour Supply Data: A Dynamic Panel Data Model with Measurement Error," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 D1-3, International Conferences on Panel Data. [Downloadable!]
  12. Euwals, Rob, 2002. "The Predictive Value of Subjective Labour Supply Data: A Dynamic Panel Data Model with Measurement Error," CEPR Discussion Papers 3121, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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