Alternative Interpretations of Hours Information in an Econometric Model of Labour Supply

Richard Blundell (), Francois Laisney and Michael Lechner

Empirical Economics, 1993, vol. 18, issue 3, 393-415

Abstract: This paper examines the labour supply behaviour of married women in France. A sequence of models is specified and estimated which incorporate different amounts of information on observed weekly hours. In all models the distinction is drawn between search and non-participation among non-workers. We provide extensive specification diagnostics, including Heckman-Andrews tests, as well as Hausman tests for the comparison of different handlings of the hours information. It turns out that distinguishing between part-time, full-time and long hours gives virtually the same results as treating observed hours as reflecting desired hours.

Date: 1993
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Working Paper: Alternative interpretations of hours information in an econometric model of labour supply (1991)
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