Improving the Modelling of Couples’ Labour Supply

Robert Breunig, Deborah A. Cobb‐clark and Xiaodong Gong ()
Authors registered in the RePEc Author Service: Deborah A. Cobb-Clark

The Economic Record, 2008, vol. 84, issue 267, 466-485

Abstract: We study work hours of Australian couples using a structural labour‐supply model. We introduce model improvements which allow error in wage estimation and unobserved influences on partners’ non‐market time to be correlated with one another and with own wage. This more realistic model produces wage elasticities – 0.26 (men) and 0.50 (women) – twice as large as those found without these innovations. Australian Government changes to the tax and transfer system between 2004 and 2006 are predicted to have little impact on participation and labour supply. Average weekly family income is predicted to increase by $65 per week.

Date: 2008
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Citations: View citations in EconPapers (12)

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https://doi.org/10.1111/j.1475-4932.2008.00511.x

Related works:
Working Paper: Improving the Modeling of Couples' Labour Supply (2005)
Working Paper: Improving the Modeling of Couples' Labour Supply (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:ecorec:v:84:y:2008:i:267:p:466-485

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