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Household labour supply with rationing in Spain

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  • Inmaculada Garcia
  • Jose Alberto Molina

Abstract

This paper provides new empirical evidence on household labour supply with rationing. To that end, we use the latest Spanish data in order to estimate three flexible functional forms, namely the NLES, the quadratic and the Hausman - Ruud forms and calculate the income and wage elasticities. We find that the number of dependants has a negative effect on the labour supply of the female. Moreover, the North and the East Spanish regions have a clearly positive effect on the labour supply of the female, whilst the North has the same effect on that of the male. The elasticities of three functional forms are very similar. Male labour supply is slightly decreasing with the wage, whilst for the female it is increasing. Leisure is a normal good for both spouses, as expected, whilst the labour hours are net substitutes.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324643
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 30 (1998)
Issue (Month): 12 ()
Pages: 1557-1570

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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1557-1570

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Cited by:
  1. Jaume Garcia & María J. Suárez, 2001. "Female labour supply in Spain: The importance of behavioural assumptions and unobserved heterogeneity specification," Economics Working Papers 542, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Javier Ferri & Antonio Gómez Gómez-Plana & Joan Martín Montaner, 2001. "International immigration and mobility across sectors: an exploration of alternative scenarios for Spain," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0116, Departamento de Economía - Universidad Pública de Navarra.
  3. Óscar Bajo Rubio & Antonio Gómez Gómez-Plana, 2001. "Reducing social contributions on unskilled labour as a way of fighting unemployment: An empirical evaluation for the case of Spain," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0102, Departamento de Economía - Universidad Pública de Navarra.
  4. Jaume García & María José Suárez, 2003. "Female labour supply and income taxation in Spain: The importance of behavioural assumptions and unobserved heterogeneity specification," Hacienda Pública Española, IEF, vol. 164(1), pages 9-27, march.
  5. Oscar Bajo-Rubio & Antonio G. Gómez-Plana, . "Simulating the effects of the European single market: a CGE analysis for Spain," Studies on the Spanish Economy 208, FEDEA.

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