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What explains the Variation in Estimates of Labour Supply Elasticities?

Author

Listed:
  • Michiel Evers

    (Erasmus Universiteit Rotterdam)

  • Ruud A. de Mooij

    (CPB, The Hague, and Erasmus Universiteit Rotterdam)

  • Daniel J. van Vuuren

    (CPB, The Hague, and Erasmus Universiteit Rotterdam)

Abstract

This paper performs a meta-analysis of empirical estimates of uncompensated labour supply elasticities. We find that much of the variation in elasticities can be explained by the variation in gender, participation rates, and country fixed effects. Country differences appear to be small though. There is no systematic impact of the model specification or marital status on reported elasticities. The decision to participate is more responsive than is the decision regarding hours worked. Even at the intensive margin, we find that the elasticity for women exceeds that for men. For men and women in the Netherlands, we predict an uncompensated labour supply elasticity of 0.1 (or 0.2 if an alternative specification is preferred) and 0.5, respectively. These values are robust for alternative samples and specifications of the meta regression.

Suggested Citation

  • Michiel Evers & Ruud A. de Mooij & Daniel J. van Vuuren, 2006. "What explains the Variation in Estimates of Labour Supply Elasticities?," Tinbergen Institute Discussion Papers 06-017/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20060017
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    References listed on IDEAS

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    More about this item

    Keywords

    labour supply; meta analysis; uncompensated elasticity;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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