Labor Supply Elasticities: Overcoming Nonclassical Measurement Error Using More Accurate Hours Data

Garry Barrett and Daniel Hamermesh

Journal of Human Resources, 2019, vol. 54, issue 1, 255-265

Abstract: We measure the impact of measurement error in labor supply elasticities estimated over recalled usual work hours, as is ubiquitous in the literature. We employ data on hours of work in diaries collected by the American Time Use Survey, 2003–2015, along with the same respondents’ recalled usual work hours. Estimates using the latter yield elasticities that are positively biased. We argue that this bias arises from the salient effects of differences in wage rates on recalled hours.

JEL-codes: C21 J22 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.3368/jhr.54.1.1216.8407R1
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Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Labor Supply Elasticities: Overcoming Nonclassical Measurement Error Using More Accurate Hours Data (2016)
Working Paper: Labor Supply Elasticities: Overcoming Nonclassical Measurement Error Using More Accurate Hours Data (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:54:y:2019:i:1:p:255-265

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