Nonparametric Estimation of Labor Supply and Demand Factors
Tsunao Okumura
Journal of Business & Economic Statistics, 2011, vol. 29, issue 1, 174-185
Abstract:
This article derives sharp bounds on labor supply and demand shift variables within a nonparametric simultaneous equations model using only observations of the intersection of upward sloping supply curves and downward sloping demand curves. Furthermore, I demonstrate that these bounds tighten with the imposition of plausible assumptions on the distribution of the disturbance terms. Using Katz and Murphy's (1992) panel data on wages and labor inputs, I estimate these bounds and assess the supply and demand factors that determine changes within male--female wage differentials and the college wage premium.
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:taf:jnlbes:v:29:y:2011:i:1:p:174-185
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DOI: 10.1198/jbes.2010.08068
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