Download or read book Individual and aggregate labor supply with coordinated working times written by Richard Rogerson and published by . This book was released on 2010 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: I analyze two extensions to the standard model of life cycle labor supply that feature operative choices along both the intensive and extensive margin. The first assumes that individuals face different continuous wage-hours schedules. The second assumes that all work must be coordinated across individuals. These models look similar qualitatively but have very different implications for how aggregate labor supply responds to changes in taxes. In the first model, curvature in the utility from leisure function plays relatively little role in determining the overall change in hours worked, whereas in the second model it is of first order importance. The second model has important implications for what data is best able to provide evidence on the extent of curvature in the utility from leisure function.
Download or read book Essays on Aggregate Labor Supply written by Choonsung Park and published by . This book was released on 2015 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The theme of this thesis is to measure the aggregate labor supply elasticity both at the intensive and extensive margins. The first two chapters concern measuring the labor supply elasticity at the extensive margin in a manner robust to model specifications. The third chapter obtains an intensive margin elasticity of labor supply in an environment in which workers' hours are complements in production. The first chapter exploits micro data on the joint distribution of consumption and wages to measure the Frisch labor supply elasticity at the extensive margin. I derive the following reservation property of the working decision: in a class of models in which the wage process is exogenous (EWP models), given consumption, there exists a unique wage level above which individuals work and below which they do not. In particular, this property is robust to arbitrary heterogeneity in borrowing constraints, discount factors, and wage processes--intuitively, consumption summarizes these factors that affect individual labor supply. Those workers with low wages relative to consumption are inferred to be more marginally attached to the labor market. The number of such workers is key to the magnitude of the Frisch elasticity at the extensive margin. Using the joint distribution of consumption and wages observed from the PSID waves 1999-2011, I find that (i) the aggregate Frisch elasticity of labor supply at the extensive margin is 0.4, and that (ii) across various demographic groups, the elasticity ranges from 0.2 to 0.6. These estimates are similar to those of quasi-experimental studies, suggesting that the number of marginal workers implied by the data is relatively small. In the second chapter, I allow the wage process to be endogenous by writing a class of models in which individuals accumulate human capital through learning-by-doing (LBD). I again measure the labor supply elasticity at the extensive margin, but consider how the human capital accumulation affects the measured elasticity compared to the simpler environment in Chapter 1. I show that in this environment the reservation wage can be defined conditional on consumption and assets choices. Intuitively, if a worker with the same wage and assets with another individual consumes more, then this suggests that the worker has a higher shadow value of LBD. Thus, consumption and assets choices jointly reveal the willingness to work, or the reservation wage. Using the data of consumption, wages, and assets from the PSID waves 1999-2011, I find that the aggregate labor supply elasticity at the extensive margin under the human capital models is 0.36, while that under the EWP models is 0.4. The small elasticity gap is because individuals with low consumption are likely to have low assets as well, implying that understanding the relationship between consumption and wages remains key to predicting the employment responses to wage shocks. Second, for narrowly defined demographic groups, the measured elasticities range from 0.2 to 1. As with the EWP models, relatively elastic groups are those who are younger, single, nonwhite, female, or without college degree. Considering the human capital accumulation does not particularly change the demographic characteristics of more marginal workers. The third chapter is based on a paper coauthored with Michele Battisti of Ifo Institute, and Ryan Michaels of the Department of Economics at the University of Rochester. We study the labor supply elasticity at the intensive margin in an environment in which workers are complements in production. The complementarity of workers implies an incentive to coordinate labor supply within the firm, which compresses working-time adjustments across workers in response to purely idiosyncratic variation in their return from working. This places no restrictions, however, on the response of firm-wide working time to firm-wide shocks. We estimate a model in which heterogeneous firms and workers bargain on working time and earnings using the method of simulated moments. The target moments are from matched firm-worker data from North-East Italy. We revisit earlier findings of a small intertemporal elasticity of labor supply exploiting the model's prediction that this elasticity will be larger for firm-wide fluctuations than evaluated at the individual level. First, the model uncovers the Frisch labor supply elasticity at the intensive margin 0.53. This value is near the top end of the range of estimates found in earlier studies. Second, to study how ignoring the coordination of labor supply affects the implied elasticity, we simulate the model such that only 1/9 of a firm's workforce receives a lump-sum transfer, but the remainder of the firm's workers do not (The fraction of the workforce corresponds to one cohort of workers that shares the same productivity and preference in the model). If we use the treatment effect in this case to infer the Frisch elasticity, the implied elasticity is less than half the estimate 0.53 we uncover."--Pages v-vii.
Download or read book Individual and Aggregate Labor Supply in Heterogeneous Agent Economies with Intensive and Extensive Margins written by Yongsung Chang and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study business cycle fluctuations in heterogeneous-agent general equilibrium models that feature both intensive and extensive margins of labor supply. A nonconvexity in the mapping between time devoted to work and labor services combined with idiosyncratic shocks generates operative extensive and intensive margins. We consider calibrated versions of this model that differ in the value of a key preference parameter for labor supply and the extent of heterogeneity. The model is able to capture the salient features of the empirical distribution of hours worked, including how individuals transit within this distribution. We then study how the various specifications influence labor supply responses to aggregate technology shocks. We ask to what extent our predictions for business cycle fluctuations are affected by abstracting from the intensive margin and instead assuming that adjustment occurs only along the extensive margin. We find that abstracting from intensive margin adjustment can have large effects on the volatility of aggregate hours even if fluctuations along the intensive margin are small.
Download or read book Lessons for the Aggregate Labor Market from Employment and Turnover Patterns Across Workers written by José Mustre-del-Río and published by . This book was released on 2011 with total page 214 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Economists often analyze economies populated by identical agents due to their tractability. However, this practice leads to discrepancies between individual and aggregate level observations. Most prominently, these models overlook large differences in behavior and outcomes across workers. This dissertation fills this gap by examining the implications of individual employment and turnover patterns for the aggregate labor market. The first chapter of this dissertation analyzes turnover differences across workers over the business cycle and their implications for overall job duration. Evidence from the National Longitudinal Survey of The Youth (NLSY) 1979-2006 suggests that average (overall) job duration is pro-cyclical, once controlling for worker composition. At the exit margin, jobs ending in recessions are of systematically shorter duration than jobs ending in booms. This result however is driven by high turnover workers who disproportionately account for exits in a recession. At the entry margin, jobs starting in recessions are expected to be of shorter duration. This result is not compositional. Recessions tend to increase the likelihood of any new job ending even when accounting for worker heterogeneity. The second chapter of this dissertation explores the implications of individual labor supply heterogeneity for the aggregate labor supply elasticity. It presents a heterogeneous agent economy with indivisible labor where agents differ in their disutility of labor and market skills. The model is estimated via indirect inference using observations on average employment and wage rates across individuals in the NLSY. The elasticity of aggregate employment in the model is 0.71, which is low compared to the literature. The results suggest that the previous literature generates large aggregate labor supply elasticities by ignoring individual labor supply differences. The third chapter is a natural extension of the second. It addresses what are the resulting aggregate employment fluctuations in an economy where agents differ in their labor supply. The results of this chapter suggest that allowing for individual labor supply heterogeneity has profound cyclical effects. The model predicts that aggregate employment fluctuations are small because individuals with very inelastic labor supply contribute disproportionately to overall employment over the business cycle"--Leaves v-vi.
Download or read book The Aggregate Implications of Individual Labor Supply Heterogeneity written by José Mustre-del-Río and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Individual and Aggregate Labor Supply in a Heterogeneous Agent Economy with Intensive and Extensive Margins written by and published by . This book was released on 2014 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book From Individual to Aggregate Labor Supply written by Yongsung Chang and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hours of Individual Labor Supply Models written by Lonnie Golden and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: What causes individuals' hours of work to climb, recede, or shift in timing? The main purpose of this article is to broaden the labor supply function to include determinants other than the conventional list of wage rate, nonwage income and preferences. Then it peers further into the black box of preferences by specifying the behavioral and social forces that both influence preference formation and lead preferences to adapt over time. Initial insights are gleaned from applying behavioral economic perspectives regarding the root sources of the process that determines how many hours and which hours someone is working or working too much? The purpose is to expand the conventional economic model of hours of labor by incorporating the various behavioral and social sources of constraints, preferences, and preference adaptation. Specifically, a model of labor hours should entail how preferences may be adaptable under social influences and how inflexibility in the workplace may often prevent individuals from getting their desired timing of work and/or a reduced number of hours. The extent of such inflexibilities puts at risk the long-term sustainability of labor as a productive resource.
Download or read book From Individual to Aggregate Labor Supply written by Yongsung Chang and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: At the aggregate level, the labor-supply elasticity depends on the reservation-wage distribution. We present a model economy where workforce heterogeneity stems from idiosyncratic productivity shocks. The model economy exhibits the cross-sectional earnings and wealth distributions that are comparable to those in the micro data. We find that the aggregate labor-supply elasticity of such an economy is around 1, greater than a typical micro estimate.
Download or read book Labor Supply and the Value of Non Work Time written by Alexandre Mas and published by . This book was released on 2017 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: We use a field experiment to estimate the marginal value of non-work time (MVT). During a national application process for phone survey and data entry positions, we randomly offered applicants alternative wage-hour bundles. Jobseeker choices over these bundles yield estimates for the MVT as a function of hours worked. These quantities trace out a labor supply relationship. As predicted by the conventional model of the allocation of time, the substitution effect is positive. Individual labor supply is highly elastic at low hours and becomes more inelastic at higher hours. For unemployed job applicants, the opportunity cost of a full-time job due to lost leisure, household production, and other non-work activities is approximately 60% of their estimated market wage. A similar estimate is found when we reproduce elements of this experiment in a nationally-representative survey.
Download or read book Taxation and Labour Supply written by C. V. Brown and published by Routledge. This book was released on 2018-12-07 with total page 402 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1981. This book reports on a decade of research into the effects of taxation on the supply of labour. In addition to their work in making labour supply estimates, the study explores a number of the ways labour supply estimates can be used. When budget constraints are non-linear it is not possible to estimate the effects of (tax) or other policy changes from knowledge of labour supply elasticities alone, and it is necessary to re-estimate the original model used to derive the estimates. The implications of labour supply estimates for the study of inequality and optimal taxation are considered. Macro-economic models of the economy typically omit labour supply functions or include functions which are inconsistent with micro-economic work on labour supply. This book will appeal to academic economists, senior students and policy-makers in the field of public finance and labour economics, who will find much of interest from both the theoretical and policy standpoints.
Download or read book The Second Shift written by Arlie Hochschild and published by Penguin. This book was released on 2012-01-31 with total page 353 pages. Available in PDF, EPUB and Kindle. Book excerpt: An updated edition of a standard in its field that remains relevant more than thirty years after its original publication. Over thirty years ago, sociologist and University of California, Berkeley professor Arlie Hochschild set off a tidal wave of conversation and controversy with her bestselling book, The Second Shift. Hochschild's examination of life in dual-career housholds finds that, factoring in paid work, child care, and housework, working mothers put in one month of labor more than their spouses do every year. Updated for a workforce that is now half female, this edition cites a range of updated studies and statistics, with an afterword from Hochschild that addresses how far working mothers have come since the book's first publication, and how much farther we all still must go.
Download or read book The Impact of Labor Taxes on Labor Supply written by Richard Rogerson and published by AEI Press. This book was released on 2010-06-16 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the Bush-era tax cuts are set to expire in 2010, ambitious health care legislation is moving through Congress, and entitlement programs are growing at unsustainable rates, U.S. policymakers face important questions about the optimal size and scope of federal spending. The federal government finances its spending through labor taxes, including taxes on income, payroll, and consumption-taxes that generate significant disincentives for employment. In Taxes, Transfers, and Labor Supply: An International Perspective, Richard Rogerson contends that the unintended consequences of increased labor taxes would be too large for policymakers to ignore. Rogerson compares fifty years of time series data from the United States and fourteen other OECD countries. He finds that a 10 percentage point increase in the tax rate on labor leads to a 10 to 15 percent decrease in hours of work. Even a 5 percent decrease in hours worked would mean a decline in labor market productivity equating to a serious recession. But, whereas recessions are temporary, changes in government spending patterns have permanent repercussions. Although government spending provides citizens with many important benefits, these benefits must be weighed against the disincentivizing effects of increased labor taxes. Policymakers who fail to account for this decrease in labor productivity risk expanding government programs beyond the economy's ability to support them.
Download or read book Handbook of Labor Economics written by Orley Ashenfelter and published by Elsevier. This book was released on 1999-11-18 with total page 800 pages. Available in PDF, EPUB and Kindle. Book excerpt: A guide to the continually evolving field of labour economics.
Download or read book Model Rules of Professional Conduct written by American Bar Association. House of Delegates and published by American Bar Association. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
Download or read book Building America s Skilled Technical Workforce written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2017-06-04 with total page 259 pages. Available in PDF, EPUB and Kindle. Book excerpt: Skilled technical occupationsâ€"defined as occupations that require a high level of knowledge in a technical domain but do not require a bachelor's degree for entryâ€"are a key component of the U.S. economy. In response to globalization and advances in science and technology, American firms are demanding workers with greater proficiency in literacy and numeracy, as well as strong interpersonal, technical, and problem-solving skills. However, employer surveys and industry and government reports have raised concerns that the nation may not have an adequate supply of skilled technical workers to achieve its competitiveness and economic growth objectives. In response to the broader need for policy information and advice, Building America's Skilled Technical Workforce examines the coverage, effectiveness, flexibility, and coordination of the policies and various programs that prepare Americans for skilled technical jobs. This report provides action-oriented recommendations for improving the American system of technical education, training, and certification.
Download or read book Doing Business 2020 written by World Bank and published by World Bank Publications. This book was released on 2019-11-21 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seventeen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2020 measures aspects of regulation affecting 10 areas of everyday business activity.
