Alternative Approaches to Discrete Working Time Choice in an Age Framework

42 Pages Posted: 31 Aug 2005 Last revised: 20 Aug 2008

See all articles by Melanie Arntz

Melanie Arntz

ZEW – Leibniz Centre for European Economic Research

Stefan Boeters

CPB Netherlands Bureau of Economic Policy Analysis; ZEW – Leibniz Centre for European Economic Research

Nicole Gürtzgen

ZEW – Leibniz Centre for European Economic Research

Date Written: 2005

Abstract

We compare two options of integrating discrete working time choice of heterogenous households into a general equilibrium model. The first, known from the literature, produces household heterogeneity through a working time preference parameter. We contrast this with a model that directly incorporates a logit discrete-choice approach into a AGE framework. On the grounds of both calibration consistency and adequate accomodation of within-household interaction, we argue that the logit approach is preferable.

Keywords: applied general equilibrium, discrete working time choice, labour market, wage bargaining, labour market reform, logit model

JEL Classification: D58, J22, J51

Suggested Citation

Arntz, Melanie and Boeters, Stefan and Guertzgen, Nicole, Alternative Approaches to Discrete Working Time Choice in an Age Framework (2005). ZEW - Centre for European Economic Research Discussion Paper No. 05-062, Available at SSRN: https://ssrn.com/abstract=790344 or http://dx.doi.org/10.2139/ssrn.790344

Melanie Arntz (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Stefan Boeters

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

HOME PAGE: http://www.cpb.nl/eng/general/org/homepages/sbt/

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Nicole Guertzgen

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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