Advanced Search
MyIDEAS: Login to save this paper or follow this series

Evidences on Household Labour Supply when Labour Demand is not Perfectly Elastic Keywords: Labour Supply, Labour Demand, Equilibrium

Contents:

Author Info

  • Edlira Narazani

    ()

Abstract

The simulations of tax-benefit reforms with labour supply models often implicitly assume perfectly elastic labour demand, an assumption that may lead to unrealistic results. In this study we attempt to address this limitation and show how the interaction between labour supply and labour demand would affect the outcome of a certain reform. We introduce a “wage subsidy scheme”, as it is commonly proved to produce labor incentives and find that, when labour demand is not considered as perfectly elastic, the simulated labor supply results to be lower for women compared to the perfectly elastic scenario but higher for their male partners. We explain this disparate behavior through the differences in cross wage elasticities the selected couples exhibit and the way labour preferences are shared between partners. These empirical findings provide a new understanding of behavioural microsimulation models and their ability to evaluate tax-transfer reforms.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.child-centre.unito.it/papers/child22_2011.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp22_11.

as in new window
Length: 20 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:wpc:wplist:wp22_11

Contact details of provider:
Postal: Via Po 53 10124 Turin
Phone: 39-011=6702726
Fax: 39-011-6702762
Email:
Web page: http://www.child-centre.it/
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. John Creedy & Alan Duncan, 2001. "Aggregating Labour Supply and Feedback Effects in Microsimulation," Melbourne Institute Working Paper Series wp2001n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  2. Creedy, John & Duncan, Alan, 2002. " Behavioural Microsimulation with Labour Supply Responses," Journal of Economic Surveys, Wiley Blackwell, vol. 16(1), pages 1-39, February.
  3. Boeters, Stefan & Feil, Michael, 2008. "Heterogeneous Labour Markets in a Microsimulation-AGE Model: Application to Welfare Reform in Germany," ZEW Discussion Papers 08-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Stefan Boeters & Michael Feil & Nicole Gürtzgen, 2007. "Discrete Working Time Choice in an Applied General Equilibrium Model," Computational Economics, Society for Computational Economics, vol. 29(3), pages 427-427, May.
  5. Ugo Colombino & Marilena Locatelli & Edlira Narazani & Cathal O’Donoghue, 2010. "Alternative Basic Income Mechanisms: An Evaluation Exercise with a Microeconometric Model," CHILD Working Papers wp04_10, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  6. repec:ese:emodwp:em6-08 is not listed on IDEAS
  7. Peichl, Andreas & Siegloch, Sebastian, 2010. "Accounting for Labor Demand Effects in Structural Labor Supply Models," IZA Discussion Papers 5350, Institute for the Study of Labor (IZA).
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpc:wplist:wp22_11. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Silvia Landorno).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.