Labor supply models: unobserved heterogeneity, nonparticipation and dynamics.
In: Heckman, J. and Leamer, E., (eds.)
Handbook of Econometrics: Volume 6A.
Elsevier: Amsterdam, The Netherlands.
This chapter is concerned with the identification and estimation of models of labor supply. The focus is on the key issues that arise from unobserved heterogeneity, nonparticipation and dynamics. We examine the simple ‘static’ labor supply model with proportional taxes and highlight the problems surrounding nonparticipation and missing wages. The difference in differences approach to estimation and identification is developed within the context of the labour supply model. We also consider the impact of incorporating nonlinear taxation and welfare programme participation. Family labor supply is looked at from botht e unitary and collective persepctives. Finally we consider intertemporal models focusing on the difficulties that arise with participation and heterogeneity.
|Title:||Labor supply models: unobserved heterogeneity, nonparticipation and dynamics|
|Open access status:||An open access version is available from UCL Discovery|
|UCL classification:||UCL > School of Arts and Social Sciences > Faculty of Social and Historical Sciences > Economics|
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