Estimates of a Labour Supply Function Using Alternative Measures of Hours of Work
Depending on data source, estimates of hours of work give widely different results both as to level and change. In this paper three alternative measures of hours worked are used to estimate a simple labour supply function to investigate if estimated wage rate and income effects are data dependent as well. The measures used include those from time-use surveys and those from regular surveys. The latter are based on the responses to a question about normal weekly hours of market work. The results suggest that estimates of the wage rate effects become much smaller when measures of normal hours are used compared to data collected for a well-defined time period close to the date of interview, such as time-use data. The income effects appear less sensitive to the choice of data.
|Date of creation:||Feb 2004|
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|Publication status:||published in: European Economic Review, 2005, 49 (1), 55-73|
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- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- Schwierz, Christoph, 2003. "The Effects of Taxes and Socioeconomic Variables on Market Work and Home Production in Norway in the Years 1970 to 2000," Memorandum 33/2003, Oslo University, Department of Economics.
- Carlin, Paul S. & Flood, Lennart, 1997. "Do children affect the labor supply of Swedish men? Time diary vs. survey data," Labour Economics, Elsevier, vol. 4(2), pages 167-183, June.
- Brownstone, David & Velletta, Robert G., 1996. "Modeling Earnings Measurement Error: A Multiple Imputation Approach," University of California Transportation Center, Working Papers qt2t08s22q, University of California Transportation Center.
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