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An Empirical Model of Discrete and Continuous Choice in Family Labor Supply

Michael Ransom ()

The Review of Economics and Statistics, 1987, vol. 69, issue 3, 465-72

Abstract: Because of the interdependent nature of family labor supply decisions, the nonnegativity constrai nt on women's hours of work will spill over into other consumption an d labor supply decisions of the family. Here the author develops an e conometric model of family labor supply that captures this "spillove r," while addressing the usual censoring issues as well. The model i s based on a flexible direct utility function and permits unobservabl e differences in tastes. The model is estimated by the maximum likeli hood method on a sample of about 1,200 families from the Panel Study of Income Dynamics. Copyright 1987 by MIT Press.

Date: 1987
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