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Female labour supply in Spain: The importance of behavioural assumptions and unobserved heterogeneity specification

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Abstract

We estimate four models of female labour supply using a Spanish sample of married women from 1994, taking into account the complete form of the individual’s budget set. The models differ in the hypotheses relating to the presence of optimisation errors and/or the way non-workers contribute to the likelihood function. According to the results, the effects of wages and non-labour income on the labour supply of Spanish married women depend on the specification used. The model which has both preference and optimisation errors and allows for both voluntarily and involuntarily unemployed females desiring to participate seems to better fit the evidence for Spanish married women.

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  • Jaume Garcia & María J. Suárez, 2001. "Female labour supply in Spain: The importance of behavioural assumptions and unobserved heterogeneity specification," Economics Working Papers 542, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:542
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    More about this item

    Keywords

    Labour supply; taxes; unobserved heterogeneity;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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