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

Garry Barrett and Daniel Hamermesh

No 22920, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We measure the impact of measurement error in labor-supply elasticities estimated over recalled usual work hours, as is ubiquitous in the literature. Employing hours of work in diaries collected by the American Time Use Survey, 2003-12, along with the same respondents’ recalled usual hours, we show that the latter yield elasticities that are positively biased. We argue that this bias arises from the salience on recalled hours of differences in wage rates.

JEL-codes: C31 J22 (search for similar items in EconPapers)
Date: 2016-12
New Economics Papers: this item is included in nep-ltv
Note: LS
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Citations: View citations in EconPapers (4)

Published as Garry F. Barrett & Daniel S. Hamermesh, 2019. "Labor Supply Elasticities," Journal of Human Resources, vol 54(1), pages 255-265.

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Related works:
Journal Article: Labor Supply Elasticities: Overcoming Nonclassical Measurement Error Using More Accurate Hours Data (2019)
Working Paper: Labor Supply Elasticities: Overcoming Nonclassical Measurement Error Using More Accurate Hours Data (2016)
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