EconPapers    
Economics at your fingertips  
 

Marginal Compensated Effects in Discrete Labor Supply Models

John K. Dagsvik (), Steinar Strøm and Marilena Locatelli ()

Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin

Abstract: This paper develops analytic results for marginal compensated effects of discrete labor supply models, including Slutsky equations. It matters, when evaluating marginal compensated effects in discrete choice labor supply models, whether one considers wage increase (right marginal effects) or wage decrease (left marginal effects). We show how the results obtained can be used to calculate the marginal cost of public funds in the context of discrete labor supply models. Subsequently, we use the empirical labor supply model of Dagsvik and Strøm (2006) to compute numerical compensated (Hicksian) and uncompensated marginal (Marshallian) effects resulting from wage changes. The mean Hicksian labor supply elasticities are larger than the Marshallian, but the difference is small.

Date: 2019-02
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.est.unito.it/do/home.pl/Download?doc=/a ... 019dip/wp_6_2019.pdf (application/pdf)

Related works:
Working Paper: Marginal Compensated Effects in Discrete Labor Supply Models (2019) 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:uto:dipeco:201906

Access Statistics for this paper

More papers in Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin Contact information at EDIRC.
Bibliographic data for series maintained by Piero Cavaleri ().

 
Page updated 2019-10-12
Handle: RePEc:uto:dipeco:201906