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Modeling the Choice of Working when the Set of Job Opportunities is Latent

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Abstract

In this paper we analyze the decision of "working" versus "not working" within a discrete choice framework, where number of available jobs is confined and related to individual characteristics. In this way the market constraint from the demand side is taken into account. We also accommodate the notion of job specific non-pecuniary attributes in the specification of preferences. We apply panel data to estimate the model. To this end a particular estimation method is developed that accounts for possible serial dependence in the preferences.

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  • Yun Li, 2000. "Modeling the Choice of Working when the Set of Job Opportunities is Latent," Discussion Papers 265, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:265
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    1. Aaberge, Rolf & Dagsvik, John K & Strom, Steinar, 1995. " Labor Supply Responses and Welfare Effects of Tax Reforms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 635-659, December.
    2. Martijn P. Tummers & Isolde Woittiez, 1991. "A Simultaneous Wage and Labor Supply Model with Hours Restrictions," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 393-423.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Sara Connolly, 1997. "A model of female labour supply in which supply is dependent upon the chances of finding a job," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1379-1386.
    5. Dagsvik, John K. & Wennemo, Tom & Wetterwald, Dag G. & Aaberge, Rolf, 2002. "Potential demand for alternative fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 36(4), pages 361-384, May.
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    More about this item

    Keywords

    Labor supply; Discrete choice; Logit model;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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