Eduardo Pontual Ribeiro () (PPGE, Universidade Federal do Rio Grande do Sul Av. JoÇo Pessoa 52, sl. 33b, Porto Alegre, RS, 90040-000, Brazil)
Abstract
The estimation of labor supply elasticities has been an important issue in the economic literature. Yet all works have estimated conditional mean labor supply functions only. The objective of this paper is to obtain more information on labor supply, estimating a conditional quantile labor supply function. We use a sample of prime age urban males employees in Brazil. Two stage estimators are used as the net wage and nonlabor income are found to be endogenous to the model. Contrary to previous works using conditional mean estimators, it is found that labor supply elasticities vary significantly and asymmetrically across hours of work. While the income and wage elasticities at the standard work week are zero, for those working longer hours the elasticities are negative.
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Find related papers by JEL classification: C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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