Interpreting labor supply regressions in a model of full-and part-time work

Yongsung Chang, Sun Bin Kim, Kyooho Kwon, Richard Rogerson

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

We construct a family model of labor supply that features adjustment along both the intensive and extensive margin. Intensive margin adj sutment is restricted to two values: full-time work and part-time work. Using simulated data from the steady state of the calibrated model, we examine whether standard labor supply regressions can uncover the true value of the intertemporal elasticity of labor supply parameter. We find positive estimated elasticities that are larger for women and that are highly significant, but they bear virtually no relationship to the underlying preference parameters.

Original languageEnglish
Pages (from-to)476-481
Number of pages6
JournalAmerican Economic Review
Volume101
Issue number3
DOIs
Publication statusPublished - 2011 May 1

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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