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An Empirical Model of Labor Supply in a Life Cycle Setting
Open accessAbstract
This paper formulates and estimates a structural life cycle model of labor supply. Using theoretical characterizations derived from an economic model of life cycle behavior, a two-stage empirical analysis yields estimates of intertemporal and uncompensated substitution effects which provides the information needed to predict the response of hours of work to life cycle wage growth and shifts in the lifetime wage path. The empirical model developed here provides a natural framework for interpreting estimates found in other work on this topic. It also indicates how cross section specifications of hours of work can be modified to estimate parameters relevant for describing labor supply behavior in a lifetime setting
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Citations
Cites
Theory of the Consumption Function
Friedman, M. (1957) · doi:10.1515/9780691188485 · Cited by 3,335
Cited by
Empirical Strategies in Labor Economics
Angrist, J. D., & Krueger, A. B. (1999) · Handbook of Labor Economics · doi:10.1016/s1573-4463(99)03004-7 · Cited by 1,628
Labor Supply of New York City Cabdrivers: One Day at a Time
Camerer, C., Babcock, L., Loewenstein, G., & Thaler, R. (1997) · The Quarterly Journal of Economics · doi:10.1162/003355397555244 · Cited by 1,218
A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle
Browning, M., Deaton, A., & Irish, M. (1985) · Econometrica · doi:10.2307/1911653 · Cited by 710
A New Method of Estimating Risk Aversion
Chetty, R. (2006) · American Economic Review · doi:10.1257/aer.96.5.1821 · Cited by 699
On the Covariance Structure of Earnings and Hours Changes
Abowd, J. M., & Card, D. (1989) · Econometrica · doi:10.2307/1912561 · Cited by 594
Metadata
- Authors
- MaCurdy, T.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 1980-01
- OpenAlex
- W2891266466
- Cited by
- 768
- References
- 1
- Type
- report
- Language
- en
- Open access
- green
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