Download or read book What Do Participation Fluctuations Tell Us About Labor Supply Elasticities written by Christian Haefke 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 Labor Force Participation Elasticities of Women and Secondary Earners Within Married Couples written by Congressional Budget Congressional Budget Office and published by CreateSpace. This book was released on 2015-01-15 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Labor supply elasticities are often used to evaluate the effect of changes in tax rates on the total hours worked in the economy. Historically, married women have tended to have larger labor supply elasticities than their spouses because they were the secondary earners in a couple. However, those elasticities have fallen sharply in recent decades-a decline that has been attributed to greater labor force participation rates and increased career orientation among married women. Indeed, a growing share of wives earn more than their husbands, raising the question whether a person's sex or relative earnings is the relevant factor affecting the sensitivity of participation to wage and tax rates. In this book, we use administrative data to examine whether women or lower-earning spouses have larger labor supply elasticities. We present descriptive evidence on the share of women who are the primary earner and the frequency of transitions into and out of employment by sex and relative earnings. We find that lower earning spouses are more likely to start and stop working than women, except when a couple starts a family. We then model an individual's work decision using a dynamic probit model to isolate the labor supply response to changes in tax rates. We estimate that the participation elasticity with respect to the net-of-tax rate of the secondary earner-the spouse who typically has lower earnings-is about 0.03, slightly higher than that for women, though both of these overall elasticities are small. Participation elasticities with respect to income for both women and secondary earners are effectively zero. Our estimates are robust to several alternative models, including alternative specifications of secondary earner.
Download or read book Does Labor Supply Explain Fluctuations in Average Hours Worked written by Joshua David Angrist and published by . This book was released on 1990 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economists have long debated over what labor supply has to do with fluctuations in hours worked. This paper uses a time series of cross-sections from the 1964-88 Current Population Surveys to study whether microeconomic intertemporal substitution models can explain time series fluctuations in annual averages. Conditional on a parametric trend, labor supply equations fit the 1975-87 data remarkably well. But estimates for 1963-74 are not robust, and estimated labor supply elasticities are much lower in the earlier period.
Download or read book Endogenous labor market participation and the business cycle written by Christian Haefke and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Cyclicality of Labor Force Participation Flows written by Isabel Cairó and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Labor Force Participation Elasticities of Women and Secondary Earners Within Married Couples written by Robert McClelland and published by . This book was released on 2014-11-15 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Labor supply elasticities are often used to evaluate the effect of changes in tax rates on the total hours worked in the economy. Historically, married women have tended to have larger labor supply elasticities than their spouses because they were the secondary earners in a couple. However, those elasticities have fallen sharply in recent decades -- a decline that has been attributed to greater labor force participation rates and increased career orientation among married women. Indeed, a growing share of wives earn more than their husbands, raising the question whether a person's sex or relative earnings is the relevant factor affecting the sensitivity of participation to wage and tax rates. This study examines whether women or lower-earning spouses have larger labor supply elasticities. Figures and tables. This is a print on demand report.
Download or read book Effects of an Income Tax on Labor Supply written by Marvin Kosters and published by . This book was released on 1968 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: The discussion of the effects of an income tax on labor supply and welfare is presented in the context of highly simplified models which abstract from problems such as shifts in the distribution of income and other complications introduced by progressivity. It is intended to point out the kinds of labor supply parameters on which changes in labor supply depend when alternative tax changes are considered, and to assemble some evidence on the welfare cost of an income tax. However, the evidence on compensated wage rate effects was obtained by studying only some readily measurable dimensions of labor supply for some components of the labor force. Although the effect on the allocation of time of a relative price distortion at the labor-leisure margin appears to be very small, except perhaps as it affects the labor force behavior of married women, an income tax can also affect consumption-savings decisions as well as the allocation of labor among different types of employment. (Author).
Download or read book Essays on Labor Supply written by Martino Tasso and published by . This book was released on 2011 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: My dissertation consists of three applied studies in the area of public finance and labor economics. In the first chapter, "The effect of financial aid and tax policies on educational choices", I build and estimate a structural dynamic life-cycle model of education choices, labor force participation, and saving decisions by young men in the United States. The model is estimated with the method of simulated moments using a longitudinal sample of white, black, and Hispanic young men from the 1997 panel of the National Longitudinal Survey of Youth. The model incorporates unobservable abilities, tuition costs, and the main features of the U.S. federal income tax. In particular, it takes into account the structure of the Lifetime Learning Tax Credit. I use the estimated model to simulate the impact of a number of education policy changes. I find a sizeable effect on college enrollment from a general tuition reduction as well as a large increase in graduate school attendance from making the Lifetime Learning Tax Credit refundable. In the second chapter, "Aggregate wage dynamics and labor supply: an application to the U.S.", I estimate labor supply elasticities using the change in the return to skills over time as a source of exogenous variation in gross wages. The last few decades have seen a tremendous amount of change in the U.S. labor market: female labor force participation rates have risen, while the wage premium for college education and wage inequality have increased because of an higher demand for skilled labor. The number of hours worked is found to react weakly to changes in the offered wage. In the third chapter, "Labor supply effects of tax-based income-support mechanisms", I build and estimate a static discrete choice model of labor supply for single women in the United States. It incorporates the main features of the federal income tax. I estimate the model using cross-sectional data, and I use it to simulate hypothetical reforms to the tax and benefit system, which is found to have a large effect on the labor force participation decision of single individuals.
Download or read book A Review of Recent Research on Labor Supply Elasticities written by Robert McClelland and published by . This book was released on 2012 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper updates a review conducted by CBO in 1996 in which the agency evaluated the academic research on the effects of changes in after-tax wages on labor supply in the U.S. economy. That review concluded that substitution elasticities were larger in absolute value than income elasticities and that the decision to work was more responsive to after-tax wages than was the choice of hours. In this update, we find that for men and single women, estimates of substitution elasticities have increased, and income elasticities still appear to be smaller in absolute value than substitution elasticities. We also find that labor supply elasticities of married women have fallen substantially in the last three decades, although they are still higher than the elasticities of men and unmarried women. Based on our review, the elasticities of broad measures of income (total income less capital gains) from tax return data are in most instances consistent with the labor supply elasticities estimated using survey data. We find little compelling evidence that high-income taxpayers have substantially higher elasticities with respect to their labor input than other taxpayers: While some studies have estimated higher elasticities of broad income among high-income taxpayers, those results appear to reflect those taxpayers’ greater ability to time their income. In contrast, we find evidence that low-income workers have higher elasticities of labor supply than other workers, especially in the component of their labor response that reflects movement in and out of the workforce.
Download or read book An Empirical Analysis of the Daily Labor Supply of Stadium Vendors written by Gerald S. Oettinger and published by . This book was released on 1999 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the daily labor supply behavior of food and beverage vendors at a single stadium over an entire baseball season. This labor market is attractive for the study of labor supply both because the vendors unilaterally decide whether to participate on each game date and because changes in product demand conditions across days are large and highly predictable, generating exogenous game-to-game variation in the vendor "wage." I exploit the observable shifts in product demand conditions across games to estimate the labor supply (participation) elasticity of stadium vendors. Estimates that recognize that demand conditions and vendor labor supply decisions simultaneously determine the vendor wage always find substantial labor supply elasticities, typically in the .55-.65 range. In contrast, estimates that ignore the endogeneity of the vendor wage yield severely downward-biased labor supply elasticities. These results highlight the importance of using demand shift instruments to identify labor supply elasticities in specific labor markets.
Download or read book Search Frictions Labor Supply and the Asymmetric Business Cycle written by Domenico Ferraro and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Married Women Labor Supply written by Xinrong Li and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the very interesting demographic features in the US over the last three decades of the 20th century is the increase of the married women labor force participation rate. Over the same period, estimated labor supply elasticity varies substantially. This dissertation is to investigate the reasons behind them. I first study the determinants of the increase of the labor participation rate for married women with preschool-aged children over the last three decades of the 20th century. Using 5% samples of the Integrated Public Use Microdata Series (IPUMS) for 1980, 1990 and 2000, I find that the existing explanations proposed in the literature may only account for 9.6% increase in the 1980s and 70% decrease in the 1990s. In this paper, I find that the rising ratio of career type women can explain 30.33% of the growth in the labor force participation rate, and the change in the composition of career motivating career type women can at least explain 17.22% growth across cohorts. Women who have been working three years before their first childbearing are more likely to return to work after the childbearing period. The analyzing data is the National Longitudinal Survey of Young Women (NLSYW) from 1968 to 2003 and the National Longitudinal Survey of Youth 1979 (NLSY79) from 1979 to 2008. This dissertation sheds some insight about a puzzle on estimated married women's labor supply elasticity variation. This important puzzle (sometimes referred to as the Hausman puzzle) is that the estimated labor supply elasticity varies substantially even when similar frameworks and similar datasets are used. I study the role of budget sets in producing this wide range of estimates. In particular, I study the effect of the typical convexification approximation of the non-convex budgets, and the well-known Heckman critique of the lack of bunching at the kink points of budget sets in the Hausman model. I introduce measurement error in nonlabor income to create an uncertain budget constraint that no longer implies bunching at kink points. Using the Panel Study of Income Dynamics (PSID) of 1984 and 2001, I find that neither the convexification approximation nor using a model with random budget sets affects the estimates. These results demonstrate that variations in budget constraints alone do not explain the different estimates of labor supply elasticity. Changing the level of budget sets, for example by ignoring the state individual income tax, could affect the variation in elasticities.
Download or read book Modern Labor Economics written by Ronald Ehrenberg and published by Taylor & Francis. This book was released on 2021-08-23 with total page 783 pages. Available in PDF, EPUB and Kindle. Book excerpt: Modern Labor Economics: Theory and Public Policy, now in its fourteenth edition, continues to be the leading text for one-semester courses in labor economics at the undergraduate and graduate levels. It offers a thorough overview of the modern theory of labor market behavior and reveals how this theory is used to analyze public policy. Designed for students who may not have extensive backgrounds in economics, the text balances theoretical coverage with examples of practical applications that allow students to see concepts in action. The authors believe that showing students the social implications of the concepts discussed in the course will enhance their motivation to learn. Consequently, this text presents numerous examples of policy decisions that have been affected by the ever-shifting labor market. This new edition continues to offer the following: a balance of relevant, contemporary examples coverage of the current economic climate an introduction to basic methodological techniques and problems tools for review and further study This fourteenth edition presents updated data throughout and a wealth of new examples, such as the impact of COVID-19 lockdowns, gig work, nudges, monopsony power in the technology industry, and the effect of machine learning on inequality. Supplementary materials for students and instructors are available on the book’s companion website.
Download or read book The Effect of Anticipated Tax Changes on Intertemporal Labor Supply and the Realization of Taxable Income written by Adam Looney and published by . This book was released on 2010 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: We use anticipated changes in tax rates associated with changes in family composition to estimate intertemporal labor supply elasticities and elasticities of taxable income with respect to the net-of-tax wage rate. A number of provisions of the tax code are tied explicitly to child age and dependent status. Changes in the ages of children can thus affect marginal tax rates through phase-in or phase-out provisions of tax credits or by shifting individuals across tax brackets. We identify the response of labor and income to these tax changes by comparing families who experienced a tax rate change to families who had a similar change in dependents but no resulting tax rate change. A primary advantage of our approach is that the changes are anticipated and therefore should not cause re-evaluations of lifetime income. The estimates of substitution effects should consequently not be confounded by life-cycle income effects. The empirical design also allows us to compare similar families and can be used to estimate elasticities across the income distribution. In particular, we provide estimates for low and middle income families. Using data from the Survey of Income and Program Participation (SIPP), we estimate an intertemporal elasticity of family labor earnings close to one for families earning between $30,000 and $75,000. Our estimates for families in the EITC phase-out range are lower but still substantial. Estimates from the IRS-NBER individual tax panel are consistent with the SIPP estimates. Tests using alternate control groups and simulated placebo tax schedules support our identifying assumptions. The high-end estimates suggest substantial efficiency costs of taxation.
Download or read book The Economics of the Family written by Esther Redmount and published by Bloomsbury Publishing USA. This book was released on 2014-12-02 with total page 593 pages. Available in PDF, EPUB and Kindle. Book excerpt: A fascinating look at the role that households—and the dynamics of families, in particular—play in creating economic growth and social stability in modern economies and markets. This timely compilation of essays examines the paradigm of family in the 21st century, delving into cohabitation, marriage, and divorce; the effects of modern family units on work and consumption; and the ramifications of life choices on economic growth and stability. The text ponders highly personal yet societal topics, such as who lives with whom and why; the reasons for low birth rates among highly educated, high-income women; and strategies busy parents use to balance career, parenthood, and personal life. Volume I explores the various profiles of families today, covering multi- or single-generational, single or dual parent, and same- or opposite-sex couples. Volume II considers how time and money are shared among family members and what impact this distribution of resources has on occupations, technology, and markets. The text scrutinizes the factors that drive family formation and dissolution, control population in countries all over the world, and contribute to a family's well-being and fortitude.
Download or read book EBOOK LABOR ECONOMICS written by BORJAS and published by McGraw Hill. This book was released on 2015-01-16 with total page 595 pages. Available in PDF, EPUB and Kindle. Book excerpt: EBOOK: LABOR ECONOMICS
Download or read book Has Globalization Gone Too Far written by Dani Rodrik and published by Peterson Institute. This book was released on 1997 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt:
