Rethinking Labour Supply: Contract Theory and Unions
This paper suggests a new approach to the economics of labour supply. Conventional econometric studies conclude, with rare exceptions, that the response of men's hours to increases in wages is small and negative. Yet policy-makers in many countries have argued that incentive effects are large and have set low marginal tax rates accordingly. The evidence in this paper, from a sample of more than twenty-three thousand UK male employees, suggests that, for non-unionized labour markets, the labour supply wage elasticity is considerably large than the existing literature has suggested. The UK offers and unusually valuable test-bed for male labour supply modelling because it has a simple flat rate tax across the majority of the income distribution and offers two natural experiments that circumvent the simultaneity problems that have dogged the literature.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1996|
|Contact details of provider:|| Postal: Department of Economics, University of Keele, Keele, Staffordshire, ST5 5BG - United Kingdom|
Phone: +44 (0)1782 584581
Fax: +44 (0)1782 717577
Web page: http://www.keele.ac.uk/depts/ec/cer/
More information through EDIRC
|Order Information:|| Postal: Department of Economics, Keele University, Keele, Staffordshire ST5 5BG - United Kingdom|
Web: http://www.keele.ac.uk/depts/ec/cer/pubs_kerps.htm Email:
When requesting a correction, please mention this item's handle: RePEc:kee:keeldp:96/10. 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: (Martin E. Diedrich)
If references are entirely missing, you can add them using this form.