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Do Austrian Men and Women Become more Equal? At Least in Terms of Labor Supply!

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Abstract

We study the development of wage elasticity of labor supply for Austrian men and women over time using comparable and representative survey data for the 1980s and 1990s. The elasticity of men is relatively low and constant over time, similar to the behavior of single women. Most remarkable is the almost continuous reduction in the labor supply reactions of married women: while their elasticity was still several times larger at the beginning of the 1980s, they approached rapidly the much less elastic behaviour of men. These developments are important for the analysis of deadweight losses of taxation as well as the effects of tax reforms and wage subsidy programs.

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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2008-05.

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Date of creation: Apr 2008
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Handle: RePEc:jku:econwp:2008_05

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Keywords: Labor supply; gender; wage elasticity;

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  1. David Blau & Philip Robins, 1991. "Child care demand and labor supply of young mothers over time," Demography, Springer, vol. 28(3), pages 333-351, August.
  2. Dearing, Helene & Hofer, Helmut & Lietz, Christine & Winter-Ebmer, Rudolf & Wrohlich, Katharina, 2007. "Why Are Mothers Working Longer Hours in Austria than in Germany? A Comparative Micro Simulation Analysis," IZA Discussion Papers 2845, Institute for the Study of Labor (IZA).
  3. Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute for the Study of Labor (IZA).
  4. repec:ese:iserwp:2007-33 is not listed on IDEAS
  5. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May.
  6. Angrist, Joshua D., 1991. "Grouped-data estimation and testing in simple labor-supply models," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 243-266, February.
  7. Alberto Alesina & Andrea Ichino & Loukas Karabarbounis, 2007. "Gender Based Taxation and the Division of Family Chores," NBER Working Papers 13638, National Bureau of Economic Research, Inc.
  8. Del Bono, Emilia & Weber, Andrea & Winter-Ebmer, Rudolf, 2008. "Clash of Career and Family: Fertility Decisions after Job Displacement," IZA Discussion Papers 3272, Institute for the Study of Labor (IZA).
  9. Fersterer, Josef & Winter-Ebmer, Rudolf, 2003. "Are Austrian returns to education falling over time?," Labour Economics, Elsevier, vol. 10(1), pages 73-89, February.
  10. Florence Jaumotte, 2003. "Female Labour Force Participation: Past Trends and Main Determinants in OECD Countries," OECD Economics Department Working Papers 376, OECD Publishing.
  11. Nicole M Fortin, 2005. "Gender Role Attitudes and the Labour-market Outcomes of Women across OECD Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 21(3), pages 416-438, Autumn.
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Cited by:
  1. Rudolf Winter-Ebmer & Mario Schnalzenberger & Nicole Schneeweis & Martina Zweimüller, 2011. "Job Quality and Employment of Older People in Europe," Economics working papers 2011-08, Department of Economics, Johannes Kepler University Linz, Austria.
  2. Tibor Hanappi & Sandra Müllbacher, 2012. "Tax Incentives and Family Labor Supply in Austria," NRN working papers 2012-12, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.

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