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Nonparametric structural estimation of labor supply in the presence of censoring
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2012 (English)In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 96, no 1-2, 89-103 p.Article in journal (Refereed) Published
Abstract [en]

This paper extends the nonparametric structural method to estimate labor supply developed by Blomquist and Newey (2002) to handle cases in which there are individuals who do not work. The method is then applied to married women in Sweden from 1973 to 1999. I find an uncompensated wage elasticity of 0.98 and an income elasticity of -0.10, with the participation margin accounting for one third of the wage elasticity and two thirds of the income elasticity. The elasticities vary, however, a lot over time due to differences in tax systems and demographics. I also find results consistent with tax rates being around the net government revenue maximizing rates.

Place, publisher, year, edition, pages
2012. Vol. 96, no 1-2, 89-103 p.
Keyword [en]
Female labor supply, Nonparametric estimation, Nonlinear budget sets, Tax revenues
National Category
Economics and Business
URN: urn:nbn:se:uu:diva-169088DOI: 10.1016/j.jpubeco.2011.08.009ISI: 000299497900009OAI: oai:DiVA.org:uu-169088DiVA: diva2:506073
Available from: 2012-02-27 Created: 2012-02-23 Last updated: 2012-02-27Bibliographically approved

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Liang, Che-Yuan
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ReferencesLink to record
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