Flexible Labor Supply Models

9 Pages Posted: 21 Jul 2009

See all articles by Olivier Bargain

Olivier Bargain

IZA Institute of Labor Economics; University College Dublin (UCD)

Abstract

Discrete-choice models of labor supply have become very popular for ex ante evaluations of policy reforms as they easily account for non-convex budget sets. We test the constraints imposed in practice on these models and suggest a fully flexible model that significantly improves fit.

Keywords: multinomial logit, labor supply, taxation

JEL Classification: H31, J22

Suggested Citation

Bargain, Olivier, Flexible Labor Supply Models. IZA Discussion Paper No. 4281, Available at SSRN: https://ssrn.com/abstract=1434615

Olivier Bargain (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University College Dublin (UCD) ( email )

Belfield, Dublin 4 4
Ireland
+353 1 716 8357 (Phone)
+353 1 283 0068 (Fax)

HOME PAGE: http://www.ucd.ie/economics/staff/obargain/obargain.htm

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