The Effects of Hours Constraints on Labor Supply Estimates
AbstractAlmost all labor supply models are estimated under the assumption that workers are free to choose their hours. However, theory, casual empiricism and survey data suggest that many workers are not free to vary the hours within a job. Consequently, labor supply estimates based on actual hours of work may be biased. Using Canadian data on desired hours of work, we find that using actual hours causes labor supply estimates to be biased upwards but the bias is small.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2647.
Date of creation: Jul 1988
Date of revision:
Publication status: published as Review of Economics and Statistics, Vol. 73, no. 4 (1991): 605-611.
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Other versions of this item:
- Kahn, Shulamit & Lang, Kevin, 1991. "The Effect of Hours Constraints on Labor Supply Estimates," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 605-11, November.
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