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Labor Supply Response Over Time

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  • Philip K. Robins
  • Richard W. West

Abstract

This study uses longitudinal data from the Seattle and Denver Income Maintenance Experiments to estimate a partial-adjustment model of labor-supply response. It is assumed that as a result of the experimental treatments, a person changes desired hours of work. The new desired hours of work are estimated empirically along with the speed at which the adjustment takes place. The results indicate that the financial treatments reduce desired hours of work by 9 percent for husbands, by 20 percent for wives, and by 25 percent for single female heads of families. The estimated time periods required for 90 percent adjustment are 2.4 years for husbands, 3.6 years for wives, and 4.5 years for single female heads. Tests are performed for differences in response by ethnicity, site, and experimental duration. The results indicate larger reductions in desired hours of work for blacks and Chicanos (relative to whites), for persons in Denver (relative to persons in Seattle), and for persons on the five-year programs (relative to persons on the three-year programs). Only in the case of husbands, however, are the ethnic, site, and duration differences statistically significant.

Suggested Citation

  • Philip K. Robins & Richard W. West, 1980. "Labor Supply Response Over Time," Journal of Human Resources, University of Wisconsin Press, vol. 15(4), pages 524-544.
    • Handle: RePEc:uwp:jhriss:v:15:y:1980:i:4:p:524-544
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    Cited by:

    1. Ernst W. Stromsdorfer, 1985. "Social Science Analysis and the Formulation of Public Policy: Illustrations of What the President "Knows" and How He Comes to "Know" It," NBER Chapters, in: Social Experimentation, pages 257-282, National Bureau of Economic Research, Inc.
    2. Hoynes, Hilary Williamson & Schanzenbach, Diane Whitmore, 2012. "Work incentives and the Food Stamp Program," Journal of Public Economics, Elsevier, vol. 96(1), pages 151-162.
    3. Robin Jessen & Davud Rostam-Afschar & Sebastian Schmitz, 2018. "How important is precautionary labour supply?," Oxford Economic Papers, Oxford University Press, vol. 70(3), pages 868-891.
    4. Sarah Croake & Priyanka Anand & Christopher Jones & Katherine Morrison & Cara Orfield & David Stapleton & Denise Hoffman & David R. Mann & Judy Geyer & Daniel Gubits & Stephen Bell & Andrew McGuirk & , "undated". "BOND Implementation and Evaluation: 2017 Stage 1 Interim Process, Participation, and Impact Report," Mathematica Policy Research Reports b00eb83020fb42e185d69f979, Mathematica Policy Research.
    5. Robin Jessen & Davud Rostam-Afschar & Sebastian Schmitz, 2018. "How important is precautionary labour supply?," Oxford Economic Papers, Oxford University Press, vol. 70(3), pages 868-891.
    6. Daniel Gubits & David Stapleton & Stephen Bell & Michelle Wood & Denise Hoffman & Sarah Croake & David R. Mann & Judy Geyer & David Greenberg & Austin Nichols & Andrew McGuirk & Meg Carroll & Utsav Ka, "undated". "BOND Implementation and Evaluation: Final Evaluation Report, Volume 1," Mathematica Policy Research Reports fac39cd85b944c528e7acbb5d, Mathematica Policy Research.
    7. Reynolds Farley, 1988. "After the starting line: Blacks and women in an uphill race," Demography, Springer;Population Association of America (PAA), vol. 25(4), pages 477-495, November.
    8. James Heckman & Lance Lochner & Ricardo Cossa, 2002. "Learning-By-Doing Vs. On-the-Job Training: Using Variation Induced by the EITC to Distinguish Between Models of Skill Formation," NBER Working Papers 9083, National Bureau of Economic Research, Inc.

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