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Sectoral labour supply, choice restrictions and functional form Author info | Abstract | Publisher info | Download info | Related research | Statistics Steinar StrØm (University of Oslo, Oslo, Norway)
John K. Dagsvik (Statistics Norway, Research Department, P.O. Box 8131 Dep., N-0033 Oslo, Norway)
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In this paper we discuss a general framework for analysing labour supply behaviour in the presence of complicated budget and quantity constraints, of which some are unobserved. The individual's labour supply decision is viewed as a choice from a set of discrete alternatives (jobs). These jobs are characterized by attributes such as hours of work, sector-specific wages and other sector-specific aspects of the jobs. The labour supply model for married women is estimated on Norwegian data. Wage elasticities and the outcome of a tax reform experiment show that overall labour supply is moderately elastic, but these modest overall responses shadow for much stronger inter-sectoral changes. Our model is compared with a discrete choice model in which the utility is assumed to be a polynomial. We show that our estimated model has a more economically sensible interpretation and fits the data as well as the alternative approach. Copyright © 2006 John Wiley & Sons, Ltd.
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics .
Volume (Year): 21 (2006)
Issue (Month): 6 ()
Pages: 803-826
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Paper John K. Dagsvik and Steinar Strøm, 2004.
"Sectoral Labor Supply, Choice Restrictions and Functional Form ,"
Discussion Papers
388, Research Department of Statistics Norway.
[Downloadable!] Dagsvik, John K. & Strøm, Steinar, 2004.
"Sectoral labor supply, choice restrictions and functional form ,"
Memorandum
13/2004, Oslo University, Department of Economics.
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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.)
John K. Dagsvik and Zhiyang Jia, 2006.
"Labor Supply as a Choice among Latent Job Opportunities. A Practical Empirical Approach ,"
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481, Research Department of Statistics Norway.
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Dagsvik John. K. & Locatelli Marilena & Strom Steinar, 2007.
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John K. Dagsvik, Marilena Locatelli and Steinar Strøm, 2006.
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