Flexible Labor Supply Models

Olivier Bargain

No 4281, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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: labor supply; multinomial logit; taxation (search for similar items in EconPapers)
JEL-codes: H31 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm and nep-lab
Date: 2009-07
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Published in: Economics Letters, 2009, 105 (1), 103-105

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