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The Predictive Value of Subjective Labor Supply Data: A Dynamic Panel Data Model with Measurement Error


Rob Euwals


CPB Netherlands Bureau of Economic Policy Research; Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR)

November 2001

IZA Discussion Paper No. 400

Abstract:     
This paper tests the predictive value of subjective labor supply data for adjustments in working hours over time. The idea is that if subjective labor supply data help to predict next year's working hours, such data must contain at least some information on individual labor supply preferences. This informational content can be crucial to identify models of labor supply. Furthermore, it can be crucial to investigate the need for, or, alternatively, the support for laws and collective agreements on working hours flexibility. In this paper I apply dynamic panel data models that allow for measurement error. I find evidence for the predictive power of subjective labor supply data concerning desired working hours in the German Socio-Economic Panel 1988-1996.

Number of Pages in PDF File: 28

Keywords: Labor Supply, Subjective Data, Measurement Error, Dynamic Panel Data Models

JEL Classification: C23, J22

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Date posted: November 26, 2001  

Suggested Citation

Euwals, Rob, The Predictive Value of Subjective Labor Supply Data: A Dynamic Panel Data Model with Measurement Error (November 2001). IZA Discussion Paper No. 400. Available at SSRN: http://ssrn.com/abstract=291723

Contact Information

Rob Euwals (Contact Author)
CPB Netherlands Bureau of Economic Policy Research ( email )
P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands
+31 70 33 83 438 (Phone)
+31 70 33 83 350 (Fax)
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
+49 228 3894 302 (Phone)
+49 228 3894 210 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
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