Estimates of Labor-Supply Elasticities with Joint Borrowing Constraints of Couples

Jan Hendrik Gravert, Christian Bredemeier and Falko Jüßen
Authors registered in the RePEc Author Service: Falko Juessen

VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy from Verein für Socialpolitik / German Economic Association

Abstract: Estimates of Frisch labor-supply elasticities are larger for women than for men. We show that standard labor-supply regressions tend to overestimate this gender difference. In couples with joint borrowing constraints, wage-rate fluctuations of the secondary earner are less important for the couples willingness to borrow. This results in smaller estimation biases for secondary earners which are mostly women, empirically. Quantitatively, our results suggest that the gender difference in true Frisch elasticities is about a fifth smaller than reported reviously.

JEL-codes: E24 J16 J22 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc15:113115

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