Testing the Predicitive Value of Subjective Labour Supply Data
AbstractEmpirical implementation of labour supply theories is usually based on realized labour market behaviour. This requires strong assumptions about the impact of labour demand. A possibility to avoid these assumptions is to make use of subjective data on desired labour supply. In this paper we investigate whether respondents’ answers to survey questions on the desired number of working hours contain additional information on the preferences of the individuals. Using panel data for the Netherlands, we analyze whether deviations between desired hours and actual hours of work help to predict future job changes or changes in hours worked. We use parametric and recently developed nonparametric tests. The results suggest that subjective information on desired working hours are helpful in explaining female labour supply. For males the evidence is mixed.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1997-25.
Date of creation: 1997
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Web page: http://center.uvt.nl
labour supply; subjective data; hypothesis testing; nonparametric methods;
Other versions of this item:
- Rob Euwals & Bertrand Melenberg & Arthur van Soest, 1998. "Testing the predictive value of subjective labour supply data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 567-585.
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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