28 Pages Posted: 26 Nov 2001
Date Written: November 2001
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.
Keywords: Labor Supply, Subjective Data, Measurement Error, Dynamic Panel Data Models
JEL Classification: C23, J22
Suggested Citation: 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: https://ssrn.com/abstract=291723