Marginal compensated effects in discrete labor supply models

This paper develops analytic results for marginal compensated effects in discrete labor supply models, including a Slutsky equation. The equation is aggregate the sense that it establishes relationship between of probability working and mean hours work terms corresponding uncompensated effects. differs somewhat from standard continuous models. Specifically, effect an increase wage rate decrease rate. To illustrate some qualitative properties we have used empirical model to compute numerical (Hicksian) (Marshallian) resulting changes.