Single Women's Labor Supply Elasticities: Trends and Policy Implications

Posted: 30 Jun 2010

See all articles by Bradley T. Heim

Bradley T. Heim

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA)

Kelly C. Bishop

Arizona State University

Kata Mihaly

RAND Corporation

Date Written: October 1, 2009

Abstract

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

Heim, Bradley T. and Bishop, Kelly C. and Mihaly, Kata, Single Women's Labor Supply Elasticities: Trends and Policy Implications (October 1, 2009). Industrial and Labor Relations Review, Vol. 63, No. 1, 2009, Available at SSRN: https://ssrn.com/abstract=1632901

Bradley T. Heim

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States

Kelly C. Bishop (Contact Author)

Arizona State University ( email )

Box 879801
Tempe, AZ 85287-3806
United States

Kata Mihaly

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

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