A Life Cycle Labour Supply Model with Taxes Estimated on German Panel Data: The Case of Parallel Preferences

Francois Laisney, Michael Lechner, Arthur van Soest () and Gerhard Wagenhals

No 93-01, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We estimate Frisch labour supply functions for married women using information on desired hours, under the assumptions that these are based on a smooth convex approximation of the budget constraint. The minimum distance approach used allows for correlated random effects both in the wage and in the taste-shifter equations, and for an unbalanced panel. We use a subsample of the German Socio-economic Panel for the years 1985-1989.

Date: 1993
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