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Discrete Choice Models for Estimating Labor Supply: Working Paper 2021-04

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  • Naveen Singhal

Abstract

This paper evaluates discrete choice models as tools for analyzing the effects of tax and transfer policies on labor supply. An advantage of discrete choice models is that they distinguish changes in labor force participation from changes in the hours of work. Such models can also capture the heterogeneity in labor supply response among and within demographic subpopulations.In this paper, two types of discrete choice models are estimated using cross-sectional data from the Current Population Survey: quadratic models and quasi-linear models. The models are

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  • Naveen Singhal, 2021. "Discrete Choice Models for Estimating Labor Supply: Working Paper 2021-04," Working Papers 57027, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:57027
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    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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