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Oferta Laboral en México: un enfoque de variables instrumentales

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  • Cinthya Caamal Olvera.

    (University of Essex.)

Abstract

This paper estimates wage and income elasticities from labour supply equations for Mexican female and male workers observed between 1988 and 2002. We use time and state variation in per capita public spending in education to identify the effect of wages on hours worked, and find strong statistical support for this instrument. We find large elasticities among women in the range of –0.023 to 0.44. These are weaker among men; especially those who are single or married without children. There is evidence of a large heterogeneity along a number of observable attributes. When comparing by region, wage elasticities become stronger for those married with children, this is, in the North Center females have the largest positive wage elasticity, 2.57; while in the Gulf, the largest positive for males is 0.615.

Suggested Citation

  • Cinthya Caamal Olvera., 2007. "Oferta Laboral en México: un enfoque de variables instrumentales," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 115-154, May.
  • Handle: RePEc:ere:journl:v:xxvi:y:2007:i:1:p:115-154
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    File URL: http://www.economia.uanl.mx/revistaensayos/xxvi/1/Oferta-laboral-en-Mexico.pdf
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    References listed on IDEAS

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    1. Xiaodong Gong & Arthur van Soest, 2002. "Family Structure and Female Labor Supply in Mexico City," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 163-191.
    2. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
    3. Hamermesh Daniel S. & Slemrod Joel B, 2008. "The Economics of Workaholism: We Should Not Have Worked on This Paper," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-30, January.
    4. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
    5. Olivier Blanchard, 2004. "The Economic Future of Europe," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 3-26, Fall.
    6. Cunningham, Wendy V., 2001. "Breadwinner or caregiver? - how household role affectslabor choices in Mexico," Policy Research Working Paper Series 2743, The World Bank.
    7. Joshua D. Angrist & Alan B. Keueger, 1991. "Does Compulsory School Attendance Affect Schooling and Earnings?," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 979-1014.
    8. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    9. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, January.
    10. Isabelle Joumard, 2005. "Getting the Most Out of Public Sector Decentralisation in Mexico," OECD Economics Department Working Papers 453, OECD Publishing.
    11. Michael P. Murray, 2006. "Avoiding Invalid Instruments and Coping with Weak Instruments," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 111-132, Fall.
    12. Arthur van Soest, 1995. "Structural Models of Family Labor Supply: A Discrete Choice Approach," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 63-88.
    13. Stéphanie Guichard, 2005. "The Education Challenge in Mexico: Delivering Good Quality Education to All," OECD Economics Department Working Papers 447, OECD Publishing.
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    Cited by:

    1. Antón-Sarabia, Arturo & Hernández-Trillo, Fausto, 2014. "Optimal gasoline tax in developing, oil-producing countries: The case of Mexico," Energy Policy, Elsevier, vol. 67(C), pages 564-571.

    More about this item

    Keywords

    Labour Supply; public expenditure on education;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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