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Estimating and simulating with a random utility random opportunity model of job choice. Presentation and application to Belgium

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  • Bart Capéau
  • André Decoster
  • Gijs Dekkers

Abstract

We present the Random Utility Random Opportunity (textscruro) model of job choice (Aaberge, Dagsvik AND Strøm, 1995, and Aaberge, Colombino AND Strøm, 1999) and report estimation results from an application of a version of that model on Belgian data (textsceu–silc 2007). We discuss the effect of education level on the intensity of preference for leisure relative to consumption, on the intensity of job offers, and on the wage offer distribution. Finally, we report simulation results with respect to the impact on labour market participation by letting the male catch up the arrears in educational attainment they currently have with respect to females.

Suggested Citation

  • Bart Capéau & André Decoster & Gijs Dekkers, 2016. "Estimating and simulating with a random utility random opportunity model of job choice. Presentation and application to Belgium," ULB Institutional Repository 2013/357209, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/357209
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    14. Bart Capéau & André Decoster & Gijs Dekkers, 2016. "Estimating and Simulating with a Random Utility Random Opportunity Model of Job Choice Presentation and Application to Belgium," International Journal of Microsimulation, International Microsimulation Association, vol. 9(2), pages 144-191.
    15. John C. Ham & Kevin T. Reilly, 2002. "Testing Intertemporal Substitution, Implicit Contracts, and Hours Restriction Models of the Labor Market Using Micro Data," American Economic Review, American Economic Association, vol. 92(4), pages 905-927, September.
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    Cited by:

    1. Matteo Richiardi, 2018. "Editorial," International Journal of Microsimulation, International Microsimulation Association, vol. 11(1), pages 1-3.
    2. John Creedy & Norman Gemmell & Nicolas Hérault & Penny Mok, 2020. "A microsimulation analysis of marginal welfare-improving income tax reforms for New Zealand," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(2), pages 409-434, April.
    3. Alpaslan Akay & Olivier Bargain & H. Xavier Jara, 2020. "‘Fair’ welfare comparisons with heterogeneous tastes: subjective versus revealed preferences," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(1), pages 51-84, June.
    4. Creedy, John & Gemmell, Norman & Hérault, Nicolas & Mok, Penny, 2018. "Microsimulation Analysis of Optimal Income Tax Reforms. An Application to New Zealand," GLO Discussion Paper Series 213, Global Labor Organization (GLO).
    5. Dagsvik, John K. & Strøm, Steinar & Locatelli, Marilena, 2021. "Marginal compensated effects in discrete labor supply models," Journal of choice modelling, Elsevier, vol. 41(C).
    6. Henk-Wim Boer, 2018. "A Structural Analysis of Labour Supply and Involuntary Unemployment in the Netherlands," De Economist, Springer, vol. 166(3), pages 285-308, September.
    7. Nazila Alinaghi & John Creedy & Norman Gemmell, 2020. "The Redistributive Effects of a Minimum Wage Increase in New Zealand: A Microsimulation Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 517-538, December.
    8. Slavko Bezeredi & Marko Ledić & Ivica Rubil & Ivica Urban, 2019. "Making work pay in Croatia: An ex-ante evaluation of two in-work benefits using miCROmod," International Journal of Microsimulation, International Microsimulation Association, vol. 12(3), pages 28-61.
    9. Creedy, John & Gemmell, Norman & Hérault, Nicolas & Mok, Penny, 2018. "Microsimulation Analysis of Optimal Income Tax Reforms. An Application to New Zealand," GLO Discussion Paper Series 213, Global Labor Organization (GLO).
    10. Bart Capéau & André Decoster & Gijs Dekkers, 2016. "Estimating and Simulating with a Random Utility Random Opportunity Model of Job Choice Presentation and Application to Belgium," International Journal of Microsimulation, International Microsimulation Association, vol. 9(2), pages 144-191.
    11. Colombino, Ugo & Islam, Nizamul, 2022. "The "Robot Economy" and Optimal Tax-Transfer Reforms," IZA Discussion Papers 15198, Institute of Labor Economics (IZA).
    12. Bart Capéau & André Decoster & Stijn Van Houtven, 2024. "Piecemeal Modeling of the Effects of Joint Direct and Indirect Tax Reforms," Public Finance Review, , vol. 52(1), pages 111-149, January.
    13. Antoine de Mahieu, 2021. "In-work Benefits in Belgium: Effects on Labour Supply and Welfare," International Journal of Microsimulation, International Microsimulation Association, vol. 14(1), pages 43-72.
    14. Gijs Dekkers & Ekaterina Tarantchenko & Karel Van den Bosch, 2019. "Working Paper 03-19 - Medium-term projection for Belgium of the at-risk-of-poverty and social exclusion indicators based on EU-SILC [Working Paper 03-19 - Prévisions à moyen terme des indicateurs d," Working Papers 1903, Federal Planning Bureau, Belgium.
    15. Ugo Colombino & Nizamul Islam, 2022. "The “Robot Economy†and optimal tax-transfer reforms," CHILD Working Papers Series 101 JEL Classification: H, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    16. Lieze Sohier, 2019. "Do Involuntary Longer Working Careers Reduce Well-being?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 14(1), pages 171-196, March.
    17. Nazila Alinaghi & John Creedy & Norman Gemmell, 2020. "The Redistributive Effects of a Minimum Wage Increase in New Zealand: A Microsimulation Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 517-538, December.

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    More about this item

    Keywords

    discrete choice; labour supply; random utility model; opportunities;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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