A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply
AbstractThe available estimates of the wage elasticity of male labor supply in the literature have varied between -0.2 and 0.2, implying that permanent wage increases have relatively small, poorly determined effects on labor supplied. The variation in existing estimates calls for a simple, natural experiment in which men can change their hours of work, and in which wages have been exogenously and permanently changed. We introduce a panel data set of taxi drivers who choose their own hours, and who experienced two exogenous permanent fare increases instituted by the New York City Taxi and Limousine Commission. Our preferred estimate suggests that their elasticity of labor supply is about -0.2.
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Bibliographic InfoPaper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 1180.
Date of creation: Sep 2009
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labor supply; New York City; wage elasticity;
Other versions of this item:
- Orley Ashenfelter & Kirk Doran & Bruce Schaller, 2010. "A Shred of Credible Evidence on the Long-run Elasticity of Labour Supply," Economica, London School of Economics and Political Science, vol. 77(308), pages 637-650, October.
- Ashenfelter, Orley & Doran, Kirk & Schaller, Bruce, 2010. "A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply," IZA Discussion Papers 4810, Institute for the Study of Labor (IZA).
- Orley Ashenfelter & Kirk B. Doran & Bruce Schaller, 2010. "A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply," Working Papers 1203, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Orley C. Ashenfelter & Kirk B. Doran & Bruce Schaller, 2010. "A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply," NBER Working Papers 15746, National Bureau of Economic Research, Inc.
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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