Discrete Hours Labour Supply Modelling: Specification, Estimation and Simulation*
نویسندگان
چکیده
The assumption behind discrete hours labour supply modelling is that utility-maximising individuals choose from a relatively small number of hours levels, rather than being able to vary hours worked continuously. Such models are becoming widely used in view of their substantial advantages, compared with a continuous hours approach, when estimating and their role in tax policy microsimulation. This paper provides an introduction to the basic analytics of discrete hours labour supply modelling. Special attention is given to model speci...cation, maximum likelihood estimation and microsimulation of tax reforms. The analysis is at each stage illustrated by the use of numerical examples.
منابع مشابه
Collective Labour Supply, Taxes, and Intrahousehold Allocation: An Empirical Approach
Collective Labour Supply, Taxes, and Intrahousehold Allocation: An Empirical Approach1 Most empirical studies of the impact of labour income taxation on the labour supply behaviour of households use a unitary modelling approach. In this paper we empirically analyze income taxation and the choice of working hours by combining the collective approach for household behaviour and the discrete hours...
متن کاملIntransigencies in the Labour Supply Choice
There have been significant recent advances in the estimation of labour supply models. Here the hours continuum is split into a number of discrete options and the preferred choice obtained as the solution to a constrained utility maximisation problem. However, the underlying probabilities of an individual being in a particular hours state, are assumed to be those given by standard Logit-type on...
متن کاملA Review of Static and Dynamic Models of Labour Supply and Labour Market Transitions
The authors are extremely grateful to Jude Hillary and Victoria Mimpriss from HM Treasury, who managed the research project, and to other named and unnamed officials in HM Treasury, the Inland Revenue and the Department for Work and Pensions who gave useful comments at various stages of the project's development. We would also like to thank the participants of the IFS seminar organised in Novem...
متن کاملEvaluating the Income Redistribution Effects of Tax Reforms in Discrete Hours Models*
Recent studies have examined tax policy issues using labour supply models characterised by a discretised budget set. Microsimulation modelling using a discrete hours approach is probabilistic. This makes analysis of the distribution of income difficult as even for a small sample with a modest range of labour supply points the range of possible labour supply combinations over the sample is extre...
متن کاملWhat Factors Affect Doctors’ Hours Decisions: Comparing Structural Discrete Choice and Reduced-Form Approaches
What Factors Affect Doctors’ Hours Decisions: Comparing Structural Discrete Choice and Reduced-Form Approaches Few papers examine the pecuniary and non-pecuniary determinants of doctors’ labour supply despite substantial predicted shortages in many OECD countries. We contribute to the literature by applying both a structural discrete choice and a reduced-form approach. Using detailed survey dat...
متن کامل