IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Modeling Wages and Hours of Work

Listed author(s):
  • Elina Pylkkänen


    (Ministry of Finance, Sweden)

Registered author(s):

    This paper consists of two parts. In the first part we introduce a wage model and in the second part we construct a household labor supply model. Both models are intended to be a part of the dynamic micro simulation model, Sesim, developed by the Ministry of Finance, Sweden. Hourly wage rates are explained by a random coefficient panel data model. To avoid the sample-selection problem a model explaining the probability of observing a wage rate is suggested. Labor supply of single- and two-adult households are modeled as a discrete choice problem. The household labor supply model is estimated assuming that preference for leisure and consumption can be described by a direct translog utility function. When constructing the households’ budget sets the complete taxation scheme and the main social benefit programs are taken into account. The wage elasticities are estimated to about 0.3 for both females and males, irrespective of the household type. However, the responses to simulated tax reforms differ between sexes and household types.

    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:
    File Function: Full text
    Download Restriction: no

    Article provided by Department of Economics, Universidade Federal de Pernambuco in its journal Brazilian Electronic Journal of Economics.

    Volume (Year): 4 (2001)
    Issue (Month): 2 (December)

    in new window

    Handle: RePEc:bej:issued:v:4:y:2001:i:2:elina
    Contact details of provider: Postal:
    Av Prof. Moraes Rego, 1235 CEP: 50670-420, Recife - PE

    Web page:

    More information through EDIRC

    Order Information: Web: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

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

    When requesting a correction, please mention this item's handle: RePEc:bej:issued:v:4:y:2001:i:2:elina. 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: (Jose Ricardo Nogueira)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.