Abstract

http://ssrn.com/abstract=876552
 
 

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What Explains the Variation in Estimates of Labour Supply Elasticities?


Michiel Evers


Tinbergen Institute - Economics

Ruud A. De Mooij


International Monetary Fund (IMF); CESifo (Center for Economic Studies and Ifo Institute); Oxford University Centre for Business Taxation

Daniel J. Van Vuuren


CPB Netherlands Bureau of Economic Policy Analysis

December 2005

Center for Economic Studies and Ifo Institute for Economic Research Working Paper Series No. 1633

Abstract:     
This paper performs a meta-analysis of empirical estimates of uncompensated labour supply elasticities. We find that much of the variation in elasticities can be explained by the variation in gender, participation rates, and country fixed effects. Country differences appear to be small though. There is no systematic impact of the model specification or marital status on reported elasticities. The decision to participate is more responsive than is the decision regarding hours worked. Even at the intensive margin, we find that the elasticity for women exceeds that for men. For men and women in the Netherlands, we predict an uncompensated labour supply elasticity of 0.1 and 0.5, respectively. These values are robust for alternative samples and specifications of the meta regression.

Number of Pages in PDF File: 28

Keywords: labour supply, meta-analysis, uncompensated elasticity

JEL Classification: J22, H2

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Date posted: January 18, 2006  

Suggested Citation

Evers, Michiel and de Mooij, Ruud A. and van Vuuren, Daniel J., What Explains the Variation in Estimates of Labour Supply Elasticities? (December 2005). Center for Economic Studies and Ifo Institute for Economic Research Working Paper Series No. 1633. Available at SSRN: http://ssrn.com/abstract=876552

Contact Information

Michiel Evers
Tinbergen Institute - Economics ( email )
P.O. Box 1738
3000 DR Rotterdam
Netherlands
Ruud A. De Mooij (Contact Author)
International Monetary Fund (IMF) ( email )
700 19th Street, N.W.
Washington, DC 20431
United States
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Oxford University Centre for Business Taxation ( email )
Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom
HOME PAGE: http://people.few.eur.nl/demooij/
Daniel J. Van Vuuren
CPB Netherlands Bureau of Economic Policy Analysis ( email )
P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands
Feedback to SSRN


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