Weather and Intertemporal Labor Supply: Results from German Time-Use Data
41 Pages Posted: 24 Mar 2017
Date Written: March 23, 2017
Dynamic models of labor supply suggest that workers intertemporally substitute labor for leisure as a response to transitory wage changes. Empirical estimates of intertemporal substitution are difficult to interpret as wage changes are rarely transitory and workers may not be able to choose their working time freely. We address both issues by estimating an intertemporal labor supply model with German time-use data and weather information. Our results provide some evidence on an interday labor supply substitution effect for women but not for men.
Keywords: intertemporal labor supply, time-use data, weather, flexible working time
JEL Classification: J22
Suggested Citation: Suggested Citation