Relaxing Intertemporal Separability: A Rational Habits Model of Labor Supply Estimated from Panel Data

Olympia Bover ()

Journal of Labor Economics, 1991, vol. 9, issue 1, 85-100

Abstract: This article relaxes the assumption of separability of preferences over time that, although implausible, is usually maintained in life-cycle labor-supply models. An empirically tractable rational habits model is specified and estimated on the basis of a ten-year sample of men from the Michigan Panel of Income Dynamics. The effect of past hours of work in determining current hours decisions is found to be very important and well determined, having allowed for permanent individual differences and for time effects. Copyright 1991 by University of Chicago Press.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://dx.doi.org/10.1086/298260 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JOLE for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:9:y:1991:i:1:p:85-100

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().