Labor Supply Models: Unobserved Heterogeneity, Nonparticipation and Dynamics
In: Handbook of Econometrics
AbstractThis chapter is concerned with the identification and estimation of models of labor supply. The focus is on the key issues that arise from unobserved heterogeneity, nonparticipation and dynamics. We examine the simple "static" labor supply model with proportional taxes and highlight the problems surrounding nonparticipation and missing wages. The difference-in-differences approach to estimation and identification is developed within the context of the labor supply model. We also consider the impact of incorporating nonlinear taxation and welfare program participation. Family labor supply is looked at from both the unitary and collective perspectives. Finally we consider intertemporal models focusing on the difficulties that arise with participation and heterogeneity.
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- Ledic, Marko, 2012. "Estimating Labor Supply at the Extensive Margin in the presence of Sample Selection Bias," MPRA Paper 55745, University Library of Munich, Germany.
- Leandro M. Magnusson, 2010.
"Inference in limited dependent variable models robust to weak identification,"
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- Leandro M. Magnusson, 2008. "Inference in Limited Dependent Variable Models Robust to Weak Identification," Working Papers 0801, Tulane University, Department of Economics, revised Apr 2009.
- Meghir, Costas & Phillips, David, 2008.
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- Black, Dan A. & Kolesnikova, Natalia & Taylor, Lowell J., 2014. "Why do so few women work in New York (and so many in Minneapolis)? Labor supply of married women across US cities," Journal of Urban Economics, Elsevier, vol. 79(C), pages 59-71.
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