Single Women's Labor Supply Elasticities: Trends and Policy Implications
Posted: 30 Jun 2010
Date Written: October 1, 2009
This paper uses CPS data to examine changes in single women’s labor supply elasticities in recent decades. Specifically, the authors investigate trends in how single women’s hours of work and labor force participation rates responded to both wages and income over the years 1979-2003. Results from the base specification suggest that over the observation period, hours wage elasticities decreased by 82%, participation wage elasticities by 36%, and participation income elasticities by 57%. These results imply that changes in tax policy had a much larger effect on the labor supply and labor force participation behavior of women in this subpopulation in the early 1980s than in recent years.
Keywords: Single Women, Labor Supply Elasticities, Trends, Policy
JEL Classification: J22, J31, J33
Suggested Citation: Suggested Citation