EconPapers    
Economics at your fingertips  
 

Labor Supply as a Choice among Latent Job Opportunities. A Practical Empirical Approach

John Dagsvik and Zhiyang Jia

Discussion Papers from Statistics Norway, Research Department

Abstract: In this paper, we discuss aspects of a particular framework for modeling labor supply and the application of this approach in practical policy simulation experiments. This modeling framework differs from the standard models of labor supply in that the notion of job choice is fundamental. Specifically, the worker is assumed to have preferences over a latent worker-specific choice set of jobs from which he or she chooses his or her preferred job. A job is characterized with fixed (job-specific) working hours and other non-pecuniary attributes. As a result, observed hours of work are interpreted as the job-specific (fixed) hours of work that is associated with the chosen job. We then show that our framework is practical with respect to applications in empirical analysis and simulation experiments, and is able to produce satisfactory out-of-sample predictions by estimating the model on Norwegian microdata from 1997 and predicting the corresponding microdata from 2003.

Keywords: Labor supply; non-pecuniary job attributes; non-convex budget sets; latent choice sets; random utility models. (search for similar items in EconPapers)
JEL-codes: C51 J22 (search for similar items in EconPapers)
Date: 2006-10
New Economics Papers: this item is included in nep-dcm, nep-lab and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
https://www.ssb.no/a/publikasjoner/pdf/DP/dp481.pdf (application/pdf)

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:ssb:dispap:481

Access Statistics for this paper

More papers in Discussion Papers from Statistics Norway, Research Department P.O.Box 8131 Dep, N-0033 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by L Maasø ().

 
Page updated 2025-04-01
Handle: RePEc:ssb:dispap:481