Flexible Labor Supply Models Discrete-choice models of labor supply have become very popular for ex ante evaluations of policy reforms as they easily account for non-convex budget sets. We test the constraints imposed in practice on these models and suggest a fully flexible model that significantly improves fit. JEL Classification: H31, J22

Conventional economic theory, coupled with standard preference parameters predict that labor supply should fall markedly over time. However, this contradicts the empirical reality that labor supply rises at the very onset of economic development, subsequently tends to fall, and then stabilizes. This paper addresses this pattern of labor supply over time, and explains it via the proliferation of...

Measuring the total impact of health insurance receipt on household labor supply is important in an era of increased access to publicly provided and subsidized insurance. Although government expansion of health insurance to older workers leads to direct labor supply reductions for recipients, there may be spillover effects on the labor supply of uncovered spouses. While the most basic model pre...

Using a nationally representative sample of college faculty from a wide array of institutions and science disciplines, this study investigates links between organizational conditions and women's representation on college faculties. Hypotheses derive from competing explanations for the sharp differences found in women's and men's career outcomes in academia: institutionalized discrimination that...

This study examines how the non-targeted earned income tax credit (EITC) introduced in Sweden in 2007 has affected the labor supply of men and women living together in two-adult households and the extent to which children affect related outcomes. Using a structural discrete labor supply model for two adult households, we estimate the impact of the EITC on both labor supply and disposable income...

Using longitudinal survey data collected in Kenya, this paper estimates the longer-term impacts of antiretroviral therapy (ART) on the labor supply of treated adults and their household members. Building upon previous work in Kenya, data collected from 2004-2006 indicate that early evidence on the short-run impacts of ART tends to be upheld over the long-term as well. The results show that the ...

One of the key issues in understanding how tax policies affect labour supply is intrahousehold allocation of time and consumption. This is in particular the case of welfare benefits aimed at providing a safety net against poverty and work incentives at the same time, such as the Working Family Tax Credit programme in the UK (and the Earned Income Tax Credit in the US). The models used to addres...

___________________________________________________________________ There have been tremendous advances in macroeconomics, following the introduction of labor supply into the field. Today it is widely acknowledged that labor supply matters for many key economic issues, particularly for business cycles and tax policy analysis. However, the extent to which labor supply matters for such questions ...

Loss Aversion and Labor Supply In many occupations workers’ labor supply choices are constrained by institutional rules regulating labor time and effort provision. This renders explicit tests of the neoclassical theory of labor supply difficult. Here we present evidence from studies examining labor supply responses in “neoclassical environments” in which workers are free to choose when and how ...

The net effects of switching from consumption taxation to inflation taxation on resource allocation and welfare crucially depend on production externalities. With elastic labor supply, raising inflation taxation decreases leisure, but increases the levels of real consumption, capital, and output. Moreover, this tax switch has two opposing effects on the level of real money balances: A positive ...