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Household labour supply with rationing in Spain


  • Inmaculada Garcia
  • Jose Alberto Molina


This paper provides new empirical evidence on household labour supply with rationing. To that end, we use the latest Spanish data in order to estimate three flexible functional forms, namely the NLES, the quadratic and the Hausman - Ruud forms and calculate the income and wage elasticities. We find that the number of dependants has a negative effect on the labour supply of the female. Moreover, the North and the East Spanish regions have a clearly positive effect on the labour supply of the female, whilst the North has the same effect on that of the male. The elasticities of three functional forms are very similar. Male labour supply is slightly decreasing with the wage, whilst for the female it is increasing. Leisure is a normal good for both spouses, as expected, whilst the labour hours are net substitutes.

Suggested Citation

  • Inmaculada Garcia & Jose Alberto Molina, 1998. "Household labour supply with rationing in Spain," Applied Economics, Taylor & Francis Journals, vol. 30(12), pages 1557-1570.
  • Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1557-1570
    DOI: 10.1080/000368498324643

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    References listed on IDEAS

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    Cited by:

    1. Jaume Garcia & María J. Suárez, 2001. "Female labour supply in Spain: The importance of behavioural assumptions and unobserved heterogeneity specification," Economics Working Papers 542, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Oscar Bajo-Rubio & Antonio G. GÛmez-Plana, "undated". "Reducing social contributions on unskilled labour as a way of fighting unemployment: An empirical evaluation for the case of Spain," Studies on the Spanish Economy 107, FEDEA.
    3. Molina, Jose Alberto & Velilla, Jorge & Ortega, Raquel, 2016. "Entrepreneurial activity in the OECD: Pooled and cross-country evidence," MPRA Paper 71592, University Library of Munich, Germany.
    4. Bajo-Rubio, Oscar & Gomez-Plana, Antonio G., 2005. "Simulating the effects of the European Single Market: A CGE analysis for Spain," Journal of Policy Modeling, Elsevier, vol. 27(6), pages 689-709, September.
    5. Javier Ferri & Antonio G. GÛmez-Plana & Joan MartÌn-Montaner, "undated". "International inmigration and mobility across sectors: an exploration of alternative scenarios for Spain," Studies on the Spanish Economy 124, FEDEA.
    6. Campaña, Juan Carlos & Gimenez-Nadal, J. Ignacio & Molina, Jose Alberto, 2016. "Diferencias entre auto-empleados y asalariados en los usos del tiempo: Aragón vs. Spain
      [Differences between self-employees and wage-earners in time uses: Aragon vs. Spain]
      ," MPRA Paper 71463, University Library of Munich, Germany.
    7. Jaume García & María José Suárez, 2003. "Female labour supply and income taxation in Spain: The importance of behavioural assumptions and unobserved heterogeneity specification," Hacienda Pública Española, IEF, vol. 164(1), pages 9-27, march.
    8. Oscar Bajo-Rubio & Antonio G. Gómez-Plana, 2004. "Reducing Social Contributions for Unskilled Labor as a Way of Fighting Unemployment: An Empirical Evaluation for the Case of Spain," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(2), pages 160-160, August.

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