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Elasticidad intertemporal y no compensada de la oferta laboral. Evidencia para el caso uruguayo

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  • Alma Espino

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Fernando Isabella

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Martín Leites

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Alina Machado

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

This research estimates the impact of wages onlabor supply decision in Uruguay considering the extensive and intensive margins, with particular emphasis on female supply. We used the specifications and econometric techniques proposed in Blundel and MaCurdy (1999) and Pencavel (2002) toestimate the supply elasticity over the life cycle (intertemporal elasticity)and the labor supply elasticity responses to parametric changes in the wage profile (uncompensated elasticity). This issue, which has a long history in international and regional literature, has received less attention in the national context, particularly in the case of female labor supply. This topic is relevant for a better understanding of recent changes in decisions to participate in the labor market in Uruguay and because of the policy implications arising from the distinction between both elasticities. The result confirm the regardless of educational level, the participation of the younger cohorts of women in the labor market has increased. Also there found differences in the magnituds between intertemporal and uncompensated elasticitis with a higher substitution effect for women. Finally, heterogeneous behaviors are verified within female population and the different trends relative to decisions on the intensive and extensive margins.

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Bibliographic Info

Paper provided by Instituto de Economia - IECON in its series Documentos de Trabajo (working papers) with number 12-18.

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Length: 43 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:ulr:wpaper:dt-18-12

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Keywords: Labour supply; Elasticitis; Gender; Pseudopanel;

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  1. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
  2. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
  3. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  4. MaCurdy, Thomas E, 1981. "An Empirical Model of Labor Supply in a Life-Cycle Setting," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1059-85, December.
  5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  6. Francisca Antman & David McKenzie, 2007. "Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity," Journal of Development Studies, Taylor & Francis Journals, vol. 43(6), pages 1057-1083.
  7. Blundell, Richard & Meghir, Costas & Neves, Pedro, 1993. "Labour supply and intertemporal substitution," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 137-160, September.
  8. Dessing, Maryke, 2002. "Labor supply, the family and poverty: the S-shaped labor supply curve," Journal of Economic Behavior & Organization, Elsevier, vol. 49(4), pages 433-458, December.
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