A Shred of Credible Evidence on the Long‐run Elasticity of Labour Supply

Orley Ashenfelter, Kirk Doran and Bruce Schaller

Economica, 2010, vol. 77, issue 308, 637-650

Abstract: All public policies regarding taxation and the redistribution of income rely on assumptions about the long‐run effect of wages rates on labour supply. The variation in existing estimates calls for a simple, natural experiment in which men can change their hours of work, and in which wages have been exogenously and permanently changed. We use a panel dataset of taxi drivers who choose their own hours, and who experienced two exogenous permanent fare increases, and estimate an elasticity of labour supply of −0.2, implying that income effects dominate substitution effects in the long‐run labour supply of males.

Date: 2010
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https://doi.org/10.1111/j.1468-0335.2010.00858.x

Related works:
Working Paper: A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply (2010)
Working Paper: A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply (2010)
Working Paper: A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply (2010)
Working Paper: A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply (2009)
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