TY - JOUR
T1 - From individual to aggregate labor supply
T2 - A quantitative analysis based on a heterogeneous agent macroeconomy
AU - Chang, Yongsung
AU - Kim, Sun Bin
PY - 2006/2
Y1 - 2006/2
N2 - At the aggregate level, the labor-supply elasticity depends on the reservation-wage distribution. We present a model economy where workforce heterogeneity stems from idiosyncratic productivity shocks. The model economy exhibits the cross-sectional earnings and wealth distributions that are comparable to those in the micro data. We find that the aggregate labor-supply elasticity of such an economy is around 1, greater than a typical micro estimate.
AB - At the aggregate level, the labor-supply elasticity depends on the reservation-wage distribution. We present a model economy where workforce heterogeneity stems from idiosyncratic productivity shocks. The model economy exhibits the cross-sectional earnings and wealth distributions that are comparable to those in the micro data. We find that the aggregate labor-supply elasticity of such an economy is around 1, greater than a typical micro estimate.
UR - http://www.scopus.com/inward/record.url?scp=33645118168&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33645118168&partnerID=8YFLogxK
U2 - 10.1111/j.1468-2354.2006.00370.x
DO - 10.1111/j.1468-2354.2006.00370.x
M3 - Review article
AN - SCOPUS:33645118168
SN - 0020-6598
VL - 47
SP - 1
EP - 27
JO - International Economic Review
JF - International Economic Review
IS - 1
ER -