Female labour supply and income taxation in Spain: The importance of behavioural assumptions and unobserved heterogeneity specification

Jaume Garcia Villar and María José Suárez
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María José Suárez: Universidad de Oviedo

Hacienda Pública Española / Review of Public Economics, 2003, vol. 164, issue 1, 9-27

Abstract: We estimate four models of female labour supply using a Spanish sample of married women from 1994, taking into account the complete form of the individual’s budget set. The models differ in the hypotheses relating to the presence of optimisation errors and/or the way non-workers contribute to the likelihood function. According to the results, the effects of wages and non-labour income on the labour supply of Spanish married women depend on the specification used. The model which has both preference and optimisation errors and allows for both voluntarily and involuntarily unemployed females desiring to participate seems to better fit the evidence for Spanish married women. Classification-JEL : J22

Keywords: labour supply; optimization errors; budget set. (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (3)

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