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Female labor supply and its determinants: Evidence for Colombia through estimates of synthetic cohorts

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  • Donald Robbins
  • Daniel Salinas
  • Araceli Manco

Abstract

The elasticity of labor supply to real wages has broad and significant implications to understanding economic fluctuations and to evaluating the effects of economic policies. Recent literature emphasizes the importance of distinguishing between uncompensated and intertemporal elasticities, controlling for the endogeneity of wages. We use a pseudo-panel of female labor hours and real wages to measure the elastiticities of labor supply to real wages. We find that life cycle theory is supported, with partially concave labor hours that are parallel to the concavity of wages. In addition, the intertemporal and uncompensated elasticities of labor supply to wages are positive but small in magnitude

Suggested Citation

  • Donald Robbins & Daniel Salinas & Araceli Manco, 2009. "Female labor supply and its determinants: Evidence for Colombia through estimates of synthetic cohorts," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 70, pages 137-163.
  • Handle: RePEc:lde:journl:y:2009:i:70:p:137-163
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    Keywords

    Labor supply; wages; life cycle; elasticities of labor supply; pseudo-panels; synthetic cohorts;

    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
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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