Labor Supply of Married Females in Estonia
AbstractIn this paper we estimate the labor supply function for married females in Estonia. Particularly, we are interested in determining the elasticities of the weekly supply of hours with respect to hourly wage rates and with respect to nonlabor income. We adopt the two-step estimation procedure. In the first step, we obtain parameter estimates of the self-selection corrected wage equation. At this stage, we document the absence of the sample selection bias in our data as well as the significant negative effect of nonproficiency in the Estonian language on the hourly wage rate. In the second step, the labor supply function is estimated using the Tobit model, where the predictions from the wage equation substitute for the market wage rates for all individuals. We find that the wage elasticity of hours supplied per week is positive (0.53), while at the same time the nonlabor income effect is insignificant.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 321.
Length: 22 p.
Date of creation: 2003
Date of revision:
Female Labor Supply; Transition Economics; Estonian Labor Market;
Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-01-19 (All new papers)
- NEP-LAB-2003-01-19 (Labour Economics)
- NEP-TRA-2003-01-19 (Transition Economics)
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