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Intertemporal labor supply and involuntary unemployment

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  • Peter Haan

    ()

  • Arne Uhlendorff

    ()

Abstract

We estimate a model of intertemporal male labor supply behavior which explicitly accounts for the effect of income taxation and the transfer system. Moreover, we model the demand-side driven rationing risk that prevents agents from choosing the optimal labor supply state. Our results show that elasticities derived in an unconstrained pure choice model are significantly higher compared to a model with involuntary unemployment. This holds true for short-run and long-run labor supply elasticities. Copyright Springer-Verlag 2013

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 44 (2013)
Issue (Month): 2 (April)
Pages: 661-683

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Handle: RePEc:spr:empeco:v:44:y:2013:i:2:p:661-683

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Related research

Keywords: Intertemporal labor supply behavior; Involuntary unemployment; Tax and transfer system; C23; C25; J22; J64;

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References

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Cited by:
  1. Bargain, Olivier & Peichl, Andreas, 2013. "Steady-state labor supply elasticities: A survey," ZEW Discussion Papers 13-084, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Peichl, Andreas & Schneider, Hilmar & Siegloch, Sebastian, 2010. "Documentation IZAΨMOD: The IZA Policy SImulation MODel," IZA Discussion Papers 4865, Institute for the Study of Labor (IZA).
  3. Zucchelli, E.; & Harris, M.; & Zhao, X.;, 2012. "Ill-health and transitions to part-time work and self-employment among older workers," Health, Econometrics and Data Group (HEDG) Working Papers 12/04, HEDG, c/o Department of Economics, University of York.
  4. Pacifico, Daniele, 2009. "Modelling Unobserved Heterogeneity in Discrete Choice Models of Labour Supply," MPRA Paper 19030, University Library of Munich, Germany.

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