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Elasticidad intertemporal y no compensada de la oferta laboral. Evidencia para el caso uruguayo

Author

Listed:
  • Alma Espino

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Fernando Isabella

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Martín Leites

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Alina Machado

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

This research estimates the impact of wages onlabor supply decision in Uruguay considering the extensive and intensive margins, with particular emphasis on female supply. We used the specifications and econometric techniques proposed in Blundel and MaCurdy (1999) and Pencavel (2002) toestimate the supply elasticity over the life cycle (intertemporal elasticity)and the labor supply elasticity responses to parametric changes in the wage profile (uncompensated elasticity). This issue, which has a long history in international and regional literature, has received less attention in the national context, particularly in the case of female labor supply. This topic is relevant for a better understanding of recent changes in decisions to participate in the labor market in Uruguay and because of the policy implications arising from the distinction between both elasticities. The result confirm the regardless of educational level, the participation of the younger cohorts of women in the labor market has increased. Also there found differences in the magnituds between intertemporal and uncompensated elasticitis with a higher substitution effect for women. Finally, heterogeneous behaviors are verified within female population and the different trends relative to decisions on the intensive and extensive margins.

Suggested Citation

  • Alma Espino & Fernando Isabella & Martín Leites & Alina Machado, 2012. "Elasticidad intertemporal y no compensada de la oferta laboral. Evidencia para el caso uruguayo," Documentos de Trabajo (working papers) 12-18, Instituto de Economía - IECON.
  • Handle: RePEc:ulr:wpaper:dt-18-12
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    References listed on IDEAS

    as
    1. Dessing, Maryke, 2002. "Labor supply, the family and poverty: the S-shaped labor supply curve," Journal of Economic Behavior & Organization, Elsevier, vol. 49(4), pages 433-458, December.
    2. Francisca Antman & David McKenzie, 2007. "Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity," Journal of Development Studies, Taylor & Francis Journals, vol. 43(6), pages 1057-1083.
    3. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
    4. Cameron,A. Colin & Trivedi,Pravin K., 2008. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9787111235767, April.
    5. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    7. Blundell, Richard & Meghir, Costas & Neves, Pedro, 1993. "Labour supply and intertemporal substitution," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 137-160, September.
    8. MaCurdy, Thomas E, 1981. "An Empirical Model of Labor Supply in a Life-Cycle Setting," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1059-1085, December.
    9. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    10. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
    11. Alma Espino & Martín Leites & Alina Machado, 2009. "El aumento en la oferta laboral de las mujeres casadas en Uruguay," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, September.
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    More about this item

    Keywords

    Labour supply; Elasticitis; Gender; Pseudopanel;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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