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Do Austrian men and women become more equal? At least in terms of labour supply!

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  • Georg Wernhart
  • Rudolf Winter-Ebmer

Abstract

We study the development of wage elasticity of labor supply for Austrian men and women over time using comparable and representative survey data for the 1980s and 1990s. The elasticity of men is relatively low and constant over time, similar to the behavior of single women. Most remarkable is the almost continuous reduction in the labor supply reactions of married women: while their elasticity was still several times larger at the beginning of the 1980s, they approached rapidly the much less elastic behaviour of men. These developments are important for the analysis of deadweight losses of taxation as well as the effects of tax reforms and wage subsidy programs.
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  • Georg Wernhart & Rudolf Winter-Ebmer, 2012. "Do Austrian men and women become more equal? At least in terms of labour supply!," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(1), pages 45-64, February.
    • Handle: RePEc:kap:empiri:v:39:y:2012:i:1:p:45-64
    DOI: 10.1007/s10663-010-9154-z
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    1. Emilia Del Bono & Andrea Weber & Rudolf Winter-Ebmer, 2012. "Clash Of Career And Family: Fertility Decisions After Job Displacement," Journal of the European Economic Association, European Economic Association, vol. 10(4), pages 659-683, August.
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    8. Nicole M Fortin, 2005. "Gender Role Attitudes and the Labour-market Outcomes of Women across OECD Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(3), pages 416-438, Autumn.
    9. Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute of Labor Economics (IZA).
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    11. Fersterer, Josef & Winter-Ebmer, Rudolf, 2003. "Are Austrian returns to education falling over time?," Labour Economics, Elsevier, vol. 10(1), pages 73-89, February.
    12. Angrist, Joshua D., 1991. "Grouped-data estimation and testing in simple labor-supply models," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 243-266, February.
    13. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    14. Michiel Evers & Ruud Mooij & Daniel Vuuren, 2008. "The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates," De Economist, Springer, vol. 156(1), pages 25-43, March.
    15. Merz, Monika, 2004. "Women's Hours of Market Work in Germany: The Role of Parental Leave," IZA Discussion Papers 1288, Institute of Labor Economics (IZA).
    16. Emilia Del Bono & Andrea Weber & Rudolf Winter-Ebmer, 2008. "Clash of Career and Family - Fertility Decisions after Job Displacement," Ruhr Economic Papers 0039, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    17. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-121, May.
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    Cited by:

    1. Sandra Müllbacher & Wolfgang Nagl, 2017. "Labour supply in Austria: an assessment of recent developments and the effects of a tax reform," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 465-486, August.
    2. Mario Schnalzenberger & Nicole Schneeweis & Rudolf Winter-Ebmer & Martina Zweimüller, 2014. "Job Quality and Employment of Older People in Europe," LABOUR, CEIS, vol. 28(2), pages 141-162, June.
    3. Tibor Paul Hanappi & Sandra Müllbacher, 2016. "Tax incentives and family labor supply in Austria," Review of Economics of the Household, Springer, vol. 14(4), pages 961-987, December.
    4. Margit Schratzenstaller-Altzinger & Fanny Dellinger, 2017. "Genderdifferenzierte Lenkungswirkungen des Abgabensystems," WIFO Studies, WIFO, number 60797.
    5. Thomas Url & Rob J Hyndman & Alexander Dokumentov, 2016. "Long-term forecasts of age-specific participation rates with functional data models," Monash Econometrics and Business Statistics Working Papers 3/16, Monash University, Department of Econometrics and Business Statistics.
    6. Ulrike Huemer & Kristina Budimir & Rainer Eppel, 2010. "Soziale Sicherungssysteme und Arbeitsmarktperformanz in der EU. Mikroökonometrische Analyse," WIFO Studies, WIFO, number 41154.
    7. Margit Schratzenstaller-Altzinger & Fanny Dellinger, 2018. "Genderdifferenzierte Lenkungswirkungen des Abgabensystems auf das Arbeitsangebot," WIFO Monatsberichte (monthly reports), WIFO, vol. 91(2), pages 105-120, February.

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    More about this item

    Keywords

    Labour supply; Gender; Wage elasticity; J21; J22;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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