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Flexible labor supply models

Olivier Bargain

Economics Letters, 2009, vol. 105, issue 1, pages 103-105

Abstract: Discrete-choice models of labor supply have become very popular for ex ante evaluations of policy reforms as they easily account for non-convex budget sets. We test the constraints imposed in practice on these models and suggest a fully flexible model that significantly improves fit.

Keywords: Multinomial; logit; Labor; supply; Taxation (search for similar items in EconPapers)
Date: 2009

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