Labor Supply (labor + supply)

Distribution by Scientific Domains
Distribution within Business, Economics, Finance and Accounting

Terms modified by Labor Supply

  • labor supply model

  • Selected Abstracts


    ECONOMIC INQUIRY, Issue 3 2010
    We investigate the impact of sex ratios by education and metropolitan area on spouses' bargaining power and labor supplies, to capture the local and qualitative nature of mate availability. Using Current Population Survey and Census data for 2000, 1990, and 1980, we estimate these effects in a collective household framework. We find that a higher relative shortage of comparably educated women in the couple's metropolitan area reduces wives' labor supply and increases their husbands'. The impact is stronger for couples in higher education groups but not significant for high school graduates. Results are similar across decades. No such effects are found for unmarried individuals. (JEL D1, J22) [source]

    Temporary Migration Overseas and Household Labor Supply: Evidence from Urban Philippines

    Edgard R. Rodriguez
    The impact of international migration on the labor supply of workers' nonmigrant relatives has not been well documented in the literature. Using household survey data representing mostly overseas contract workers, i.e., temporary migrants, this paper shows that labor supplies of migrants and their nonmigrant relatives are inseparable. Migrants reduce the labor supply of nonmigrant relatives, which translates into lower earnings from local labor markets. Households substitute income for more leisure , a significant and previously little recognized benefit of emigration for Philippine households. This benefit varies by gender of nonmigrants and is generally higher for men. [source]

    Heterogeneity, Efficiency and Asset Allocation with Endogenous Labor Supply: The Static Case

    Marcelo Bianconi
    We study the implications of consumption and labor allocations with ex ante efficiency and possibly ex post inefficiency on international/interregional portfolio diversification. The answers we obtain depend crucially on the market regime relative to unemployment insurance. If there are complete markets for unemployment insurance, changes in asset allocation are small in the presence of ex post inefficiency, but if there are incomplete markets for unemployment insurance, changes in asset allocation can be large. The direction of the asset movement is towards more diversification. [source]

    Intersectoral Labor Mobility and the Growth of the Service Sector

    ECONOMETRICA, Issue 1 2006
    Donghoon Lee
    One of the most striking changes in the U.S. economy over the past 50 years has been the growth in the service sector. Between 1950 and 2000, service-sector employment grew from 57 to 75 percent of total employment. However, over this time, the real hourly wage in the service sector grew only slightly faster than in the goods sector. In this paper, we assess whether or not the essential constancy of the relative wage implies that individuals face small costs of switching sectors, and we quantify the relative importance of labor supply and demand factors in the growth of the service sector. We specify and estimate a two-sector labor market equilibrium model that allows us to address these empirical issues in a unified framework. Our estimates imply that there are large mobility costs: output in both sectors would have been double their current levels if these mobility costs had been zero. In addition, we find that demand-side factors, that is, technological change and movements in product and capital prices, were responsible for the growth of the service sector. [source]

    Cross-state variation in Medicaid programs and female labor supply

    ECONOMIC INQUIRY, Issue 3 2000
    E Montgomery
    Using a pooled cross-section data set from the 1980 through 1993 Current Population Survey March Supplements, we test if different Medicaid benefit levels across states impact the labor supply behavior of female heads of households. The ordinary least square (OLS) results support the prediction that Medicaid expenditures reduce labor supply. Controlling for state fixed or random effects alters the effect of both AFDC and Medicaid on the decision to participate as well as the number of hours worked. We also find that while the effects of program generosity are sensitive to the inclusion of state effects those of variation in eligibility thresholds are not. [source]

    Change in the Concentration of Employment in Computer Services: Spatial Estimation at the U.S. Metro County Level

    GROWTH AND CHANGE, Issue 1 2007
    ABSTRACT This article models the concentration of computer services activity across the U.S. with factors that incorporate spatial relationships. Specifically, we enhance the standard home-area study with an analysis that allows conditions in neighboring counties to affect the concentration of employment in the home county. We use county-level data for metropolitan areas between 1990 and 1997. To measure change in employment concentration, we use the change in location quotients for SIC 737, which captures employment concentration changes caused by both the number of firms and the scale of their activity relative to the national average. After controlling for local demand for computer services, our results support the importance of the presence of a qualified labor supply, interindustry linkages, proximity to a major airport, and spatial processes in explaining changes in computer services employment concentration, finding little support for the influence of cost factors. Our enhanced model reveals interjurisdictional relationships among these metro counties that could not be captured with standard estimates by state, metropolitan statistical area (MSA), or county. Using counties within MSAs, therefore, provides more general results than case studies but still allows measurement of local interactions. [source]

    Mental illness, nativity, gender and labor supply

    HEALTH ECONOMICS, Issue 4 2010
    Victoria D. Ojeda
    Abstract We analyzed the impacts of nativity and mental health (MH) on work by gender for non-elderly adults using the 2002 National Survey on Drug Use and Health. We employed two indicators of MH , the K6 scale of Mental Illness (MI) and an indicator for symptoms of Mania or Delusions (M/D). Instrumental variable (IV) models used measures of social support as instruments for MI. Unadjusted work rates were higher for immigrants (vs US-born adults). Regressions show that MI is associated with lower rates of work among US-born males but not immigrant males and females; M/D is associated lower rates of work among US-born males and females, and among immigrant males. Results did not change using IV models for MI. Most persons with MI work, yet symptom severity reduces labor supply among natives especially. Immigrants' labor supply is less affected by MI. Copyright © 2009 John Wiley & Sons, Ltd. [source]

    Do microfinance programs help families insure consumption against illness?

    HEALTH ECONOMICS, Issue 3 2009
    Paul Gertler
    Abstract Families in developing countries face enormous financial risks from major illness both in terms of the cost of medical care and the loss in income associated with reduced labor supply and productivity. We test whether access to microfinancial savings and lending institutions helps Indonesian families smooth consumption after declines in adult health. In general, results support the importance of these institutions in helping families to self-insure consumption against health shocks. Copyright © 2008 John Wiley & Sons, Ltd. [source]

    Measuring the effect of husband's health on wife's labor supply

    HEALTH ECONOMICS, Issue 6 2006
    Michele J. SiegelArticle first published online: 31 JAN 200
    Abstract A sizable proportion of women remain married well into late life and an increasing proportion of them participate in the labor force. Since women tend to marry men older than themselves and men tend to experience serious illnesses at younger ages than women, women frequently witness declining health in their husbands. This is likely to affect a wife's labor,leisure trade-off in offsetting ways. Prior studies have not sought to disentangle the effect of a husband's poor health on his wife's reservation wage from the income effect of his ill health. We argue that, if we control for husband's earnings, the coefficient of husband's health in models of his wife's labor force participation (and hours of work) will reflect, in part, her preference over whether to decrease her labor supply to provide health care for her husband or whether to instead increase it to purchase this care in the market. However, husband's earnings are likely to be endogenous in these models due to unobserved characteristics common to husbands and wives. We find that the estimated effect of husband's health depends on whether we instrument for husband's earnings and on the health measure used. This is indicative of the importance of using a variety of health measures and controlling for husband's earnings, and their endogeneity, in future research on the effect of husband's health on wife's labor supply. Copyright © 2006 John Wiley & Sons, Ltd. [source]


    Hanming Fang
    We empirically implement a dynamic structural model of labor supply and welfare program participation for agents with potentially time-inconsistent preferences. Using panel data on the choices of single women with children from the National Longitudinal Surveys (NLSY) 1979, we provide estimates of the degree of time-inconsistency, and of its influence on the welfare take-up decision. With these estimates, we conduct counterfactual experiments to quantify a measure of the utility loss stemming from the inability to commit to future decisions, and the potential gains from commitment mechanisms such as welfare time limits and work requirements. [source]


    Conny Olovsson
    Market work per person is roughly 10% higher in the United States than in Sweden. However, if we include the work carried out in home production, the total amount of work only differs by 1%. I set up a model and show that differences in policy,mainly taxes,can account for the discrepancy in both labor supply and home production between Sweden and the United States. These results are independent of the elasticity of labor supply. [source]

    Discreteness and the Welfare Cost of Labor Supply Tax Distortions*

    Keshab Bhattarai
    We compare the welfare costs of tax distortions of labor supply in one- and two-member household discrete and continuous choice labor supply (leisure consumption) models calibrated to the same aggregate uncompensated labor supply elasticities. In the discrete models, taxes induce a large response from a subset of the population, whereas the majority of the population exhibits unchanged behavior. In contrast, the majority of the population reacts to tax changes in continuous models. Discrete choice matters as the welfare costs of similar taxes vary significantly when individuals face discrete labor supply choices from when they choose working hours continuously. [source]

    Estimating a Dynamic Model of Household Choices in the Presence of Income Taxation

    Holger Sieg
    The purpose of the article is to study the incentive and distributional consequences of income taxation. The article analyzes tax changes in a dynamic setting. The framework is estimated under a set of different identifying assumptions using parametric, nonparametric, and semiparametric techniques. The empirical results focus on tax reforms in Germany in the 1980s. The article shows that these reforms did not significantly lower effective tax rates. The findings also suggest that estimated elasticities for male labor supply are small, ranging between 0.02 and 0.2. [source]

    Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation

    Christian Bontemps
    In this article we develop an equilibrium search model with a continuous distribution of firm productivity types within a given labor market. We characterize equilibrium, derive expressions for the endogenous equilibrium wage distributions, and characterize the set of wage distributions that can be generated by the model. We develop a structural nonparametric estimation method for the productivity distribution. We estimate the model using French longitudinal survey data on labor supply, and we compare the results with those from a French panel data set of firms. The results are informative on the degree to which firms exploit search frictions. [source]

    On the stabilizing virtues of imperfect competition

    Thomas Seegmuller
    D43; E32 We analyze the stabilizing role of imperfect competition on fluctuations as a result of indeterminacy and endogenous cycles. In this paper, imperfect competition is a source of monopoly profits, because of producer market power. Considering an overlapping generations model with capital accumulation and elastic labor supply, we show that under imperfect competition, the emergence of endogenous fluctuations requires a weaker substitution between production factors than under perfect competition. In this sense, imperfect competition stabilizes fluctuations. However, we find an opposite conclusion concerning the elasticity of labor supply. Indeed, endogenous fluctuations are compatible with a less elastic labor supply under imperfect competition. [source]

    Temporary Migration Overseas and Household Labor Supply: Evidence from Urban Philippines

    Edgard R. Rodriguez
    The impact of international migration on the labor supply of workers' nonmigrant relatives has not been well documented in the literature. Using household survey data representing mostly overseas contract workers, i.e., temporary migrants, this paper shows that labor supplies of migrants and their nonmigrant relatives are inseparable. Migrants reduce the labor supply of nonmigrant relatives, which translates into lower earnings from local labor markets. Households substitute income for more leisure , a significant and previously little recognized benefit of emigration for Philippine households. This benefit varies by gender of nonmigrants and is generally higher for men. [source]

    Semiparametric Bayesian inference for dynamic Tobit panel data models with unobserved heterogeneity

    Tong Li
    This paper develops semiparametric Bayesian methods for inference of dynamic Tobit panel data models. Our approach requires that the conditional mean dependence of the unobserved heterogeneity on the initial conditions and the strictly exogenous variables be specified. Important quantities of economic interest such as the average partial effect and average transition probabilities can be readily obtained as a by-product of the Markov chain Monte Carlo run. We apply our method to study female labor supply using a panel data set from the National Longitudinal Survey of Youth 1979. Copyright © 2008 John Wiley & Sons, Ltd. [source]

    Unemployment and liquidity constraints

    Vassilis A. Hajivassiliou
    We present a dynamic framework for the interaction between borrowing (liquidity) constraints and deviations of actual hours from desired hours, both measured by discrete-valued indicators, and estimate it as a system of dynamic binary and ordered probit models with panel data from the Panel Study of Income Dynamics. We analyze a household's propensity to be liquidity constrained by means of a dynamic binary probit model. We analyze qualitative aspects of the conditions of employment, namely whether the household head is involuntarily overemployed, voluntarily employed, or involuntarily underemployed or unemployed, by means of a dynamic ordered probit model. We focus on the possible interaction between the two types of constraints. We estimate these models jointly using maximum simulated likelihood, where we allow for individual random effects along with an autoregressive process for the general error term in each equation. A novel feature of our method is that it allows for the random effects to be correlated with regressors in a time-invariant fashion. Our results provide strong support for the basic theory of constrained behavior and the interaction between liquidity constraints and exogenous constraints on labor supply. Copyright © 2007 John Wiley & Sons, Ltd. [source]

    Intertemporal analysis of employment decisions on agricultural holdings in Slovenia

    Luka Juvan
    Employment decisions; Mobility of labor supply; Off-farm employment; Probit model Abstract The article attempts to quantify determinants influencing the dynamics of employment decisions on agricultural holdings in Slovenia and to test specific aspects of labor reallocation during the transition period by the application of an agricultural household model. Through the use of a 1991,2000 longitudinal data set for 22,055 farm households, quantitative analysis of intertemporal employment decisions by farm holders is carried out using probit techniques. The determinants tested relate to the personal characteristics of farm holders (gender, age, education level, and potential off-farm income), household characteristics (size, structure), characteristics of the agricultural holding (economic size, labor intensity), and local labor market conditions. The model results generally confirm existing empirical evidence on asymmetrical and irreversible participation of holders on the labor market. Despite intensive restructuring of agriculture and profound changes in the nonfarm labor market in the analyzed period, labor supply of farm holders remains rigid. The mobility of labor supply is lower than expected, which can be attributed to the importance of structural problems constraining intersectoral mobility. Low labor mobility reduces the efficiency of labor allocation on agricultural holdings in Slovenia. Elements of this problem emerge on both supply (e.g., low level of educational and professional attainment of reference persons) and demand sides of the labor market (e.g., unfavorable local labor market conditions). A marked tendency toward maintaining the same employment status is more distinct in the case of holders employed on-farm only. [source]

    How Dual Are Dual-Income Couples?

    Documenting Change From 1970 to 200
    Using Current Population Survey data for 1970, 1980, 1990, and 2001 (N =73,001), we document change in the prevalence of couples where (a) the wife contributes less than 40% of the family income, (b) income contributions are relatively equal, and (c) the wife's income contribution surpasses her husband's contribution. In 1970, close to 90% of couples had conventional earning arrangements: The husband was the sole provider in 56% of couples and contributed 60% or more of the income in an additional 31% of couples. By 2001, husbands were still the sole (25%) or major provider (39%) in a majority (64%) of couples but wives shared equally in providing income in 24% of couples, more than double the 9% in 1970. Additionally, wives as primary (or sole) earners increased from 4% to 12%. We investigate the associations between income provisioning within dual-income families and ongoing cohort replacement by younger couples, women's increased human capital, life course processes, couple's labor supply, and race. Our findings suggest that wives' increased human capital and couple's labor supply were strongly associated with increased female breadwinning patterns, but age cohort replacement processes and life stage factors also played a role in explaining change over time. [source]

    The Marginal Costs and Benefits of Redistributing Income and the Willingness to Pay for Status

    The effect of status on aggregate welfare is ambiguous for marginal reforms that redistribute income. If average consumption falls, the change in relative consumption increases household utility but reinforces the decrease in household labor supply, raising welfare cost. For parameterizations of the model developed here, reforms which lower average consumption increase aggregate welfare. Numerical calculations show that status increases marginal welfare cost and marginal net benefit for a demogrant reform. Redistributing to high income households may increase aggregate welfare depending on the definition of average consumption and if the willingness to pay for status increases with income. [source]

    From Welfare to Work: Evaluating a Tax and Benefit Reform Targeted at Single Mothers in Sweden

    LABOUR, Issue 3 2007
    Lennart Flood
    We formulate and estimate simultaneously a structural static model of labor supply and welfare participation. The results suggest that labor supply among single mother households in Sweden is quite elastic, and that there is self-selection into welfare. We also find that the proposed reform would generate welfare gains for virtually everyone in the sample, benefit low-income households, and would at the same time generate a small revenue surplus. [source]

    Fertility and Employment in Italy, France, and the UK

    LABOUR, Issue 2005
    Daniela Del Boca
    According to the agenda for employment set by the European Union in 2000 for the following 10 years, the target for female employment was set at 60 per cent for the year 2010. Although Northern and most Continental countries have achieved this quantitative target, the Mediterranean countries are lagging behind. Labor market policies should be aimed to encourage women's participation and reduce the cost of working. However, the persistence of a negative relationship between participation and fertility in these countries implies that it is important to take fertility into account. We analyse a model of labor supply and fertility, using data from the European Community Household Panel (ECHP) for the period 1994,2000, merged with regional data describing the available labor market opportunities in the households' environment. [source]


    ABSTRACT. Exit and entry of fishermen, as well as vessels, is modeled explicitly. If the speed of exit and entry of fishermen is less than instantaneous the wage rate varies with the fortunes of the fishing firms and affects the endogenous labor supply creating a second transmission mechanism from profits to effort. There are realistic cases where this mechanism has important effects on the stability of the dynamic system and on the effects of taxes (subsisdies) on the size of the fish stock. If labor supply depends negatively on the wage rate, the immediate effect of an increase in the tax rate is to increase effort and harvest. This condition makes it also more probable that the dynamic system is unstable. In those cases where the dynamic system is unstable the increase in the tax rate increases overexploitation not only in the short-term but also in the long-term. [source]

    The nonprofit leadership deficit: A case for more optimism

    Janet L. Johnson
    Recent headlines claim that a looming nonprofit leadership crisis will soon be precipitated by retiring baby boomers. Analysis of baby boom demographics, using national census data on the age distribution and other demographic characteristics of top leaders by sector, confirms the aging nonprofit workforce. However, the issue of whether the aging workforce portends a nonprofit leadership crisis, when analyzed within a theoretical framework of supply and demand in the market for nonprofit executives, reveals flaws in most commentaries about the leadership crisis. Workings of the labor market and nonprofit organizations themselves suggest trends that could be expected to affect labor supply and demand and mitigate a leadership deficit. Reasonable,and likely,market and organizational adjustments, including higher executive pay, increased labor force participation of older workers, skill acquisition of younger workers, possible consolidation of nonprofit organizations, board and volunteer skill sharing, and even venture philanthropy, can be expected to moderate the shock of baby boom retirements, much in the way that schools, job markets, and housing markets have accommodated the movement of this "bulging" generation through earlier decades of their lives. [source]

    Time distances and labor market integration

    Börje Johansson
    Accessibility; regional labor markets; commuting Abstract This article investigates how time distances within and between municipalities determine the spatial extent of local and regional labor markets. As time distances change, the extent of the labor market will also change. Diminishing time distances will bring about increases in labor market size by integrating formerly spatially separate markets. We analyze such processes using accessibility measures derived from a random choice preference function approach. Accessibility is measured in terms of number of jobs, labor supply and supply of service functions. The aim of the work is to illustrate the usefulness of the purpose-specific accessibility measure we introduce. [source]

    The socio-economical burden of hypersomnia

    P. Jennum
    Jennum P, Kjellberg J. The socio-economical burden of hypersomnia. Acta Neurol Scand: 2010: 121: 265,270. © 2009 The Authors Journal compilation © 2009 Blackwell Munksgaard. Objectives,,, In the absence of socio-economical consequences of hypersomnia this study addresses the factual indirect and direct costs. Methods,,, Two thousand two hundred and eight patients with a hypersomnia diagnosis from 1998 to 2005 were identified in the Danish national patient registry (NPR), each compared with 4 age and gender adjusted, randomly chosen citizens selected from the Civil Registration System Statistics. The health cost was decomposed in direct and indirect yearly costs, including labor supply and social transfer payments. Direct costs included frequencies and costs of discharges and outpatient use by cost weights according to diagnosis related groups and specific outpatient prices based on data from The Danish Ministry of Health. The use of and costs of drugs was based on data from the Danish Medicines Agency. The frequencies and costs from primary sectors were based on data from The National Health Security. Indirect costs were based on income data from the coherent social statistics (CSS). Results,,, Patients with hypersomnia presented significant higher health related contact rate, expenses and medication use. No differences were identified in employment and income. The yearly sum of direct and indirect costs were yearly ,3402 vs. ,1212 in controls (P < 0.001), corresponding to a yearly excess costs ,2190. The patients presented higher transfer income, total ,889. Conclusion,,, Hypersomnia patient present higher health and medication uses, and social transfer income and thus represent a significant socio-economical burden. [source]