Labor Supply of Married Females in Estonia
In this paper we estimate the labor supply function for married females in Estonia. Particularly, we are interested in determining the elasticities of the weekly supply of hours with respect to hourly wage rates and with respect to nonlabor income. We adopt the two-step estimation procedure. In the first step, we obtain parameter estimates of the self-selection corrected wage equation. At this stage, we document the absence of the sample selection bias in our data as well as the significant negative effect of nonproficiency in the Estonian language on the hourly wage rate. In the second step, the labor supply function is estimated using the Tobit model, where the predictions from the wage equation substitute for the market wage rates for all individuals. We find that the wage elasticity of hours supplied per week is positive (0.53), while at the same time the nonlabor income effect is insignificant.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: Mohrenstraße 58, D-10117 Berlin|
Web page: http://www.diw.de/en
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Charles Kroncke & Kenneth Smith, 1999. "The wage effects of ethnicity in Estonia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 179-199, March.
- Gerfin, Michael, 1996.
"Parametric and Semi-parametric Estimation of the Binary Response Model of Labor Market Participation,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 11(3), pages 321-39, May-June.
- Michael Gerfin, 1993. "Parametric and Semiparametric Estimation of the Binary Response Model of Labor Market Participation," Diskussionsschriften dp9315, Universitaet Bern, Departement Volkswirtschaft.
- Blundell, Richard William & Ham, John & Meghir, Costas, 1987.
"Unemployment and Female Labour Supply,"
CEPR Discussion Papers
149, C.E.P.R. Discussion Papers.
- Melenberg, B. & Van Soest, A., 1993.
"Semi-Parametric Estimation on the Sample Selection Model,"
9334, Tilburg - Center for Economic Research.
- Melenberg, B. & van Soest, A.H.O., 1993. "Semi-parametric estimation of the sample selection model," Discussion Paper 1993-34, Tilburg University, Center for Economic Research.
- Mroz, Thomas A, 1987.
"The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions,"
Econometric Society, vol. 55(4), pages 765-99, July.
- Thomas Mroz, . "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," University of Chicago - Population Research Center 84-8, Chicago - Population Research Center.
- Boeri, Tito, 2001.
"Transition with Labour Supply,"
IZA Discussion Papers
257, Institute for the Study of Labor (IZA).
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- Maria Fraga O. Martins, 2001. "Parametric and semiparametric estimation of sample selection models: an empirical application to the female labour force in Portugal," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(1), pages 23-39.
- Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July.
- Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-63, June.
- Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May.
- Catherine Saget, 1999. "The determinants of female labour supply in Hungary," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 575-591, November.
- Callan, T. & van Soest, A.H.O., 1994.
"Family labour supply and taxes in Ireland,"
1994-26, Tilburg University, Center for Economic Research.
- Wales, T J & Woodland, A D, 1980. "Sample Selectivity and the Estimation of Labor Supply Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(2), pages 437-68, June.
- Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
- James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp321. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek)
If references are entirely missing, you can add them using this form.