EconPapers    
Economics at your fingertips  
 

Sectoral labor supply, choice restrictions and functional form

John Dagsvik and Steinar Strøm

No 13/2004, Memorandum from Oslo University, Department of Economics

Abstract: In this paper we discuss a general framework for analyzing labor supply behavior in the presence of complicated budget- and quantity constraints of which some are unobserved. The individual’s labor supply decision is viewed as a choice from a set of discrete alternatives (jobs). These jobs are characterized by attributes such as hours of work, sector specific wages and other sector specific aspects of the jobs. We focus in particular on the theoretical justification of functional form assumptions and properties of the random components of the model.The labor supply model for married women is estimated on Norwegian data. Wage elasticities and the outcome of a tax reform analysis show that overall labor supply is moderately elastic, but these modest overall responses shadow for much stronger inter-sectoral changes. Our structural model, with a detailed specification of job opportunities, is compared empirically with a model in which the utility is approximated with a series expansion. It turns out that the performance of our model is at least as good as the labor supply model with flexible preferences.

Keywords: Labor supply; non-convex budget sets; non-pecuniary job-attributes; sector-specific wages (search for similar items in EconPapers)
JEL-codes: C51 J22 (search for similar items in EconPapers)
Date: 2004-10-27
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.sv.uio.no/econ/english/research/unpubli ... 004/Memo-13-2004.pdf (application/pdf)

Related works:
Journal Article: Sectoral labour supply, choice restrictions and functional form (2006) Downloads
Working Paper: Sectoral Labor Supply, Choice Restrictions and Functional Form (2004) Downloads
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:hhs:osloec:2004_013

Access Statistics for this paper

More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().

 
Page updated 2019-10-20
Handle: RePEc:hhs:osloec:2004_013