A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply

Orley Ashenfelter, Kirk Doran and Bruce Schaller
Additional contact information
Bruce Schaller: New York City Department of Transportation

No 1180, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

Abstract: The available estimates of the wage elasticity of male labor supply in the literature have varied between -0.2 and 0.2, implying that permanent wage increases have relatively small, poorly determined effects on labor supplied. The variation in existing estimates calls for a simple, natural experiment in which men can change their hours of work, and in which wages have been exogenously and permanently changed. We introduce a panel data set of taxi drivers who choose their own hours, and who experienced two exogenous permanent fare increases instituted by the New York City Taxi and Limousine Commission. Our preferred estimate suggests that their elasticity of labor supply is about -0.2.

Keywords: labor supply; New York City; wage elasticity (search for similar items in EconPapers)
JEL-codes: H31 J22 (search for similar items in EconPapers)
Date: 2009-09
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://dataspace.princeton.edu/bitstream/88435/dsp019880vq993/1/551.pdf
Our link check indicates that this URL is bad, the error code is: 500 Internal Server Error

Related works:
Journal Article: A Shred of Credible Evidence on the Long‐run Elasticity of Labour Supply (2010)
Working Paper: A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply (2010)
Working Paper: A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply (2010)
Working Paper: A Shred of Credible Evidence on the Long Run Elasticity of Labor Supply (2010)
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:pri:indrel:551

Access Statistics for this paper

More papers in Working Papers from Princeton University, Department of Economics, Industrial Relations Section. Contact information at EDIRC.
Bibliographic data for series maintained by Bobray Bordelon ().