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Estimates of a Labour Supply Function Using Alternative Measures of Hours of Work

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  • Klevmarken, N. Anders

    ()
    (Uppsala University)

Abstract

Depending on data source, estimates of hours of work give widely different results both as to level and change. In this paper three alternative measures of hours worked are used to estimate a simple labour supply function to investigate if estimated wage rate and income effects are data dependent as well. The measures used include those from time-use surveys and those from regular surveys. The latter are based on the responses to a question about normal weekly hours of market work. The results suggest that estimates of the wage rate effects become much smaller when measures of normal hours are used compared to data collected for a well-defined time period close to the date of interview, such as time-use data. The income effects appear less sensitive to the choice of data.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1035.

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Length: 37 pages
Date of creation: Feb 2004
Date of revision:
Publication status: published in: European Economic Review, 2005, 49 (1), 55-73
Handle: RePEc:iza:izadps:dp1035

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Keywords: time-use; labour supply; hours of work; measurement errors;

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References

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  1. Richard Blundell & Thomas MaCurdy, 1998. "Labour supply: a review of alternative approaches," IFS Working Papers, Institute for Fiscal Studies W98/18, Institute for Fiscal Studies.
  2. Schwierz, Christoph, 2003. "The Effects of Taxes and Socioeconomic Variables on Market Work and Home Production in Norway in the Years 1970 to 2000," Memorandum, Oslo University, Department of Economics 33/2003, Oslo University, Department of Economics.
  3. Brownstone, David & Velletta, Robert G., 1996. "Modeling Earnings Measurement Error: A Multiple Imputation Approach," University of California Transportation Center, Working Papers qt2t08s22q, University of California Transportation Center.
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Cited by:
  1. Kimmel, Jean & Connelly, Rachel, 2006. "Is Mothers' Time With Their Children Home Production or Leisure?," IZA Discussion Papers 2058, Institute for the Study of Labor (IZA).
  2. Shun-ichiro Bessho & Masayoshi Hayashi, 2005. "The CES Utility Function, Non-linear Budget Constraints and Labor Supply : Results on Prime-age Males in Japan," Labor Economics Working Papers 22041, East Asian Bureau of Economic Research.
  3. Gimenez-Nadal, Jose Ignacio & Sevilla, Almudena, 2012. "Trends in Time Allocation: A Cross-Country Analysis," IZA Discussion Papers 6709, Institute for the Study of Labor (IZA).
  4. Trostel, P. & Walker, I., 2000. "Education and Work," The Warwick Economics Research Paper Series (TWERPS) 554, University of Warwick, Department of Economics.
  5. Hyytinen, Ari & Ruuskanen, Olli-Pekka, 2006. "What makes an entrepreneur independent? Evidence from time use survey," Discussion Papers, The Research Institute of the Finnish Economy 1029, The Research Institute of the Finnish Economy.
  6. Kalenkoski, Charlene M. & Ribar, David C. & Stratton, Leslie S., 2006. "The Influence of Wages on Parents’ Allocations of Time to Child Care and Market Work in the United Kingdom," IZA Discussion Papers 2436, Institute for the Study of Labor (IZA).
  7. Bessho, Shun-ichiro & Hayashi, Masayoshi, 2008. "A Structural Estimation of the CES Preferences and Linear Labor Supply: The Case of Prime-Age Males in Japan," Discussion Papers 2008-02, Graduate School of Economics, Hitotsubashi University.
  8. Steffen Otterbach & Alfonso Sousa-Poza, 2010. "How Accurate are German Work-time Data? A Comparison of Time-diary Reports and Stylized Estimates," Social Indicators Research, Springer, Springer, vol. 97(3), pages 325-339, July.

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