TESTING ALTERNATIVE MODELS OF LABOUR SUPPLY: EVIDENCE FROM TAXI DRIVERS IN SINGAPORE

Yuan K. Chou ()
Additional contact information
Yuan K. Chou: Department of Economics, University of Melbourne, VIC 3010, Australia

The Singapore Economic Review (SER), 2002, vol. 47, issue 01, 17-47

Abstract: In this paper, we use data from a survey of taxi drivers in Singapore to test two competing labour supply hypotheses: the standard intertemporal model and the income targeting model, where workers set an earnings target over some short time horizon. The former predicts positive wage elasticities of labour supply, while an extreme form of the latter implies an elasticity of -1. The estimated wage elasticities are persistently negative, even after correcting for measurement error using instrumental variables. However, these findings are consistent with those in Camereret al.(1997)'s study of New York City's cab drivers.

Keywords: Labour supply; Income targeting; Life-cycle model; Wage elasticity (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (49)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590802000389
Access to full text is restricted to subscribers

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:wsi:serxxx:v:47:y:2002:i:01:n:s0217590802000389

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590802000389

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().