Marginal compensated effects in discrete labor supply models

John K. Dagsvik, Steinar Strøm () and Marilena Locatelli

Journal of choice modelling, 2021, vol. 41, issue C

Abstract: This paper develops analytic results for marginal compensated effects in discrete labor supply models, including a Slutsky equation. The Slutsky equation is aggregate in the sense that it establishes the relationship between the marginal compensated effects of the probability of working and the mean hours of work in terms of the corresponding marginal uncompensated effects. The Slutsky equation differs somewhat from the Slutsky equation in the standard continuous labor supply models. Specifically, the marginal compensated effect of an increase in the wage rate differs from the corresponding effect of a decrease in the wage rate.

Keywords: Marginal compensated effects; Slutsky equations; Discrete choice labor supply (search for similar items in EconPapers)
JEL-codes: C51 J22 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Marginal Compensated Effects in Discrete Labor Supply Models (2019)
Working Paper: Marginal Compensated Effects in Discrete Labor Supply Models (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eejocm:v:41:y:2021:i:c:s1755534521000592

DOI: 10.1016/j.jocm.2021.100326

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