Annual Hours and Weeks in a Life-Cycle Labor Supply Model: Canadian Evidence on Male Behavior
Estimates of the intertemporal labor supply behavior of males in Canada using micro data are reported. Individuals make the intertemporal labor supply decision on the basis of annual hours and weeks. Precision of the parameter estimates is improved by using tenure variables as instruments for the wage. Further, the age and tenure variables are allowed to have taste parameters in the structural equations. The evidence suggests that this is required only for the two age variables. Elasticity evidence suggests that evolutionary changes in the wage cause changes in the number of weeks with the elasticity being 0.6 and statistically significant. Copyright 1994 by University of Chicago Press.
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