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Extensive and intensive margins of labour supply: working hours in the US, UK and France

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  • Richard Blundell

    ()
    (Institute for Fiscal Studies and University College London)

  • Antoine Bozio

    ()
    (Institute for Fiscal Studies)

  • Guy Laroque

    ()
    (Institute for Fiscal Studies and University College London)

Abstract

This paper documents the key stylised facts underlying the evolution of labour supply at the extensive and intensive margins in the last forty years in three countries: United-States, United-Kingdom and France. We develop a statistical decomposition that provides bounds on changes at the extensive and intensive margins. This decomposition is also shown to be coherent with the analysis of labour supply elasticities at these margins. We use detailed representative micro-datasets to examine the relative importance of the extensive and intensive margins in explaining the overall changes in total hours worked. We also present some initial estimates of the broad distribution of implied elasticities and their implication for the overall aggregate hours elasticity.

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Bibliographic Info

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W11/01.

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Date of creation: Feb 2011
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Handle: RePEc:ifs:ifsewp:11/01

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  1. Richard Blundell & Antoine Bozio & Guy Laroque, 2011. "Extensive and intensive margins of labour supply: working hours in the US, UK and France," IFS Working Papers W11/01, Institute for Fiscal Studies.
  2. Richard Blundell & Thomas MaCurdy, 1998. "Labour supply: a review of alternative approaches," IFS Working Papers W98/18, Institute for Fiscal Studies.
  3. Richard Rogerson & Johanna Wallenius, 2007. "Micro and Macro Elasticities in a Life Cycle Model With Taxes," NBER Working Papers 13017, National Bureau of Economic Research, Inc.
  4. Richard Blundell & Antoine Bozio & Guy Laroque, 2011. "Labor Supply and the Extensive Margin," American Economic Review, American Economic Association, vol. 101(3), pages 482-86, May.
  5. repec:hal:cesptp:halshs-00202299 is not listed on IDEAS
  6. Gurgand, Marc & Margolis, David N., 2008. "Does work pay in France? Monetary incentives, hours constraints, and the guaranteed minimum income," Journal of Public Economics, Elsevier, vol. 92(7), pages 1669-1697, July.
  7. Chetty, Nadarajan & Weber, Andrea & Guren, Adam Michael & Day, Manoli, 2011. "Are Micro and Macro Labor Supply Elasticities Consistent? A Review of Evidence on the Intensive and Extensive Margins," Scholarly Articles 11878970, Harvard University Department of Economics.
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