Labour Supply (labour + supply)

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

Terms modified by Labour Supply

  • labour supply model
  • labour supply models
  • labour supply response

  • Selected Abstracts


    UPSTREAM TRANSFERS AND THE DONOR'S LABOUR SUPPLY: EVIDENCE FROM MIGRANTS LIVING IN FRANCE*

    THE MANCHESTER SCHOOL, Issue 2 2009
    FRANÇOIS-CHARLES WOLFF
    With the use of data on migrants living in France, we study the pattern of transfers of time and money made to parents. Monetary transfers allocate predominantly towards the large number of elderly parents in the country of origin, while the smaller number of migrant parents in France are more likely to receive time transfers. Our econometric results suggest that monetary transfers are more consistent with the altruistic hypothesis. Furthermore, while the donor's labour participation increases the propensity to give money, there is no negative relationship between time transfers and the labour participation of the donor. [source]


    EFFECTS OF A CHILD'S DISABILITY ON AFFECTED FEMALE'S LABOUR SUPPLY IN AUSTRALIA

    AUSTRALIAN ECONOMIC PAPERS, Issue 3 2010
    ZENG-HUA LU
    Australia has experienced a growing rate of child disability, with the rate of 3.7 per cent in 1998 increasing to 4.3 per cent in 2003 for children aged under four years and from 9.5 per cent to 10 per cent for children aged five to 14 years in the same period. However, surprisingly no study has examined the economic effects of child disability in the Australian context. This paper attempts to quantify the link between a child's disability and the work behaviour of the female in the affected family. Our findings provide empirical justifications for the current policy linking the severity level of child disability to the assessment of eligibility for Carer Payment (Child). We also found that child disability has different impacts on the labour market activities of married women and non-married women. It appears that child disability imposes a greater hardship on non-married women than on married women in terms of work choice decision. Once non-married women manage to enter the labour force, they may have to stay on to work as usual even if they have a disabled child, because they may not have other family members to turn to for help as married women do. [source]


    A Shred of Credible Evidence on the Long-run Elasticity of Labour Supply

    ECONOMICA, Issue 308 2010
    ORLEY ASHENFELTER
    All public policies regarding taxation and the redistribution of income rely on assumptions about the long-run effect of wages rates on labour supply. The variation in existing estimates calls for a simple, natural experiment in which men can change their hours of work, and in which wages have been exogenously and permanently changed. We use a panel dataset of taxi drivers who choose their own hours, and who experienced two exogenous permanent fare increases, and estimate an elasticity of labour supply of ,0.2, implying that income effects dominate substitution effects in the long-run labour supply of males. [source]


    Household Unemployment and the Labour Supply of Married Women

    ECONOMICA, Issue 270 2001
    Paul Bingley
    A recent reform to the UK unemployment insurance (UI) system has reduced the duration of entitlement from 12 to six months. The UI and welfare systems interact in the UK in such a way that exhaustion of UI for married individuals has potentially large disincentive effects on the labour supply of spouses. A model of labour supply is estimated for married women allowing for endogenous unemployment durations of husbands and wives. We distinguish between transfer programme induced incentive effects; correlation between labour supply and wages within couples; complementarity between the leisure times of spouses; and a discouraged worker effect. [source]


    Joint Taxation and the Labour Supply of Married Women: Evidence from the Canadian Tax Reform of 1988,

    FISCAL STUDIES, Issue 3 2007
    Thomas F. Crossley
    The Canadian federal tax reform of 1988 replaced a spousal tax exemption with a non-refundable tax credit. This reduced the,jointness'of the tax system: after the reform, secondary earners'effective,first dollar'marginal tax rates no longer depended on the marginal tax rates of their spouses. In practice, the effective,first dollar'marginal tax rates faced by women with high-income husbands were particularly reduced. Using difference-indifference estimators, we find a significant increase in labour force participation among women married to higher-income husbands. [source]


    Physicians' Labour Supply: The Wage Impact on Hours and Practice Combinations

    LABOUR, Issue 4 2005
    Erik Magnus Sæther
    Increased wages is one instrument for boosting the hours provided by the personnel to the prioritized sub-markets. This study applies an econometric framework that allows for non-convex budget sets, non-linear labour supply curves and imperfect markets with institutional constraints. The labour supply decision is viewed as a choice from a set of discrete alternatives (job packages) in a structural labour supply model estimated on Norwegian micro data. An out-of-sample prediction is also presented and evaluated by means of a natural experiment. [source]


    Dragon Children: Identifying the Causal Effect of the First Child on Female Labour Supply with the Chinese Lunar Calendar,

    OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 3 2008
    James P. Vere
    Abstract Instrumental variables (IV) estimates of the effect of fertility on female labour supply have only been able to identify the causal effect of second and higher parity children. This study uses exogenous variation in fertility caused by the Chinese lunar calendar to identify the effect of the first child. Additionally, weighting formulas are presented to interpret IV estimates as weighted average treatment effects in the case of multiple endogenous variables, which are useful when children vary in intensity by both number and age. The effect of the first child is found to be much greater than that of other children. [source]


    Children, Labour Supply and Child Care: Challenges for Empirical Analysis

    THE AUSTRALIAN ECONOMIC REVIEW, Issue 3 2009
    Guyonne Kalb
    The aim of this article is to give an overview of the important issues relating to the labour supply of the primary carer in a household. Child care plays a central role in allowing the primary carer time away from the young children in a household. Therefore, child-care use is a central topic of this article, as well. There are a number of different aspects to child care, such as the price, quality, availability and type of service. This article discusses the analytical problems and challenges, taking Australian data, policy and experience as a focus, but drawing on a wide range of international empirical studies. It reports the results from previous research on child-care use and labour supply and it outlines the areas requiring more study. The focus of the article is on economic research. [source]


    Welfare Reform and the Labour Supply of Lone Parents in Australia: A Natural Experiment Approach

    THE ECONOMIC RECORD, Issue 249 2004
    Denise J. Doiron
    Large shifts in the labour supply of lone parents in Australia were observed between 1986 and 1990. Changes in the observed characteristics of lone parents explain only a small portion of these shifts. Propensity score matching and difference-in-differences are used to estimate the effects of the substantial policy shifts implemented in 1987. Control groups are constructed from the sample of married mothers. Results suggest that the policy reforms caused a substantial increase in the employment of lone parents while causing a reduction in the hours of work among the workers. [source]


    Interrogating Racialized Global Labour Supply: An Exploration of the Racial/National Replaceme of Foreign Agricultural Workers in Canada,

    CANADIAN REVIEW OF SOCIOLOGY/REVUE CANADIENNE DE SOCIOLOGIE, Issue 1 2007
    Kerry Preibisch
    Dans cet article, on analyse le remplacement des travailleurs antillais par des Mexicains dans le Programme des travailleurs agricoles saisonniers du gouvernement du Canada, en mettant l'accent sur le rôle des interprétations racialisées dans la mise en ,uvre de ce genre de programme. On y soutient qu'un mécanisme de racialisation étaie les discours des agriculteurs ontariens à la recherche de la main-d ,uvre la plus laborieuse, fiable et flexible. Parfois même, les discours des agriculteurs affichent un racisme grossier, dépeignant les honimes antillais comme des Noirs hypersexués qui présentent un risque pour les Canadiennes, alors que, d'autres fois, ces préjugés raciaux sont formulées en termes de prédispositions physiques ou psychologiques à travailler à certaines récoltes. This paper analyses the replacement of Caribbean workers by Mexicans in Canada's Seasonal Agricultural Workers Program, highlighting the role of racialized understandings in implementing foreign worker programs. It argues that a process of racialization underpins the discourses employed by Ontario growers in search of the most hardworking, reliable and flexible labour force. Sometimes grower discourses manifest a crude racism, casting Caribbean men as hypersexualized Black subjects who pose a risk to Canadian women, while other times these racialized assumptions are framed in terms of physical and/or psychic dispositions to the production of certain crops. [source]


    Resources, techniques, and strategies south of the Sahara: revising the factor endowments perspective on African economic development, 1500,20001

    ECONOMIC HISTORY REVIEW, Issue 3 2008
    GARETH AUSTIN
    This article seeks to revise and re-apply the factor endowments perspective on African history. The propositions that sub-Saharan Africa was characterized historically by land abundance and labour scarcity, and that the natural environment posed severe constraints on the exploitation of the land surplus, are broadly upheld. Important alterations are suggested, however, centred on the seasonality of labour supply, Ruf's concept of ,forest rent', and, for precolonial economies, the role of fixed capital. This revised endowments framework is then applied in order to explore the long-term dynamics of economic development in Africa, focusing on how the economic strategies of producers and political authorities created specific paths of change which shifted the production possibility frontiers of the economies concerned, and ultimately altered the very factor ratios to which the strategies had been responses. [source]


    DEMOGRAPHIC SHIFT AND PROJECTED LABOUR SHORTAGE IN CHINA

    ECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 3 2007
    INGRID NIELSEN
    As a result of China's family planning policy of ,raising population quality and controlling population size' initiated in the late 1970s, China has accomplished a population transition from high birth rate, low mortality rate and high population growth to low birth rate, low mortality rate and low population growth within a remarkably short timeframe. Along with this population transition, however, comes a shift in population age structure, with a rapid increase in the proportion of elderly people. This paper explores the implications of China's demographic shift for labour supply and suggests policy changes to target an emerging labour shortage. [source]


    A Shred of Credible Evidence on the Long-run Elasticity of Labour Supply

    ECONOMICA, Issue 308 2010
    ORLEY ASHENFELTER
    All public policies regarding taxation and the redistribution of income rely on assumptions about the long-run effect of wages rates on labour supply. The variation in existing estimates calls for a simple, natural experiment in which men can change their hours of work, and in which wages have been exogenously and permanently changed. We use a panel dataset of taxi drivers who choose their own hours, and who experienced two exogenous permanent fare increases, and estimate an elasticity of labour supply of ,0.2, implying that income effects dominate substitution effects in the long-run labour supply of males. [source]


    Coping with Rational Prodigals: A Theory of Social Security and Savings Subsidies

    ECONOMICA, Issue 289 2006
    STEFAN HOMBURG
    The rational prodigality argument, which often serves to justify social security, is considered in a second-best tax framework with endogenous labour supply. Rational prodigality renders the familiar policies time-inconsistent. I analyse time-consistent policies and show that a wage tax suffices to rule out prodigality as a rational strategy. However, by using savings subsidies the solution can be improved upon. The subsidies are shown to be decreasing in income. A social security system with increasing contributions is not needed in either case. [source]


    Household Unemployment and the Labour Supply of Married Women

    ECONOMICA, Issue 270 2001
    Paul Bingley
    A recent reform to the UK unemployment insurance (UI) system has reduced the duration of entitlement from 12 to six months. The UI and welfare systems interact in the UK in such a way that exhaustion of UI for married individuals has potentially large disincentive effects on the labour supply of spouses. A model of labour supply is estimated for married women allowing for endogenous unemployment durations of husbands and wives. We distinguish between transfer programme induced incentive effects; correlation between labour supply and wages within couples; complementarity between the leisure times of spouses; and a discouraged worker effect. [source]


    Apply with Caution: Introducing UK-Style In-Work Support in Germany,

    FISCAL STUDIES, Issue 1 2007
    Peter Haan
    Estimates of the labour supply effects of recent UK reforms in the area of direct taxes and benefits show that policy can have significant influence on the level of employment. We confirm this in a simulation of an in-work support system introduced into the German tax and benefit system. Our simulation results suggest that introducing in-work tax credits in Germany would increase the employment of single individuals by over 105,000 but would result in a reduction of labour supply among individuals living in couples by about 70,000, among both women and men. The result found for men is especially important as it is markedly different from all results for the UK, where the net response among men has always been found to be positive. Our estimation results call for a high degree of caution as far as ,importing' UK-style tax credits to Germany is concerned. In-work support based on family income would reinforce the existing work disincentives for secondary earners, reducing the employment levels of both men and women living in couples. [source]


    Population Ageing, Fiscal Pressure and Tax Smoothing: A CGE Application to Australia,

    FISCAL STUDIES, Issue 2 2006
    Ross Guest
    Abstract This paper analyses the fiscal pressure from population ageing using an intertemporal CGE model, applied to Australia, and compares the results with those of a recent government-commissioned study. The latter study uses an alternative modelling approach based on extrapolation rather than optimising behaviour of consumers and firms. The deadweight losses from the fiscal pressure caused by population ageing are equivalent to an annual loss of consumption of $260 per person per year in 2003 dollars in the balanced-budget scenario. A feasible degree of tax smoothing would reduce this welfare loss by an equivalent of $70 per person per year. Unlike the extrapolation-based model, the CGE approach takes account of feedback effects of ageing-induced tax increases on consumption and labour supply, which in turn impact on the ultimate magnitude of fiscal pressure and therefore tax increases. However, a counterfactual simulation suggests that the difference in terms of deadweight losses between the two modelling approaches is modest, at about $30 per person per year. [source]


    Social Security Design in the UK: What is optimal?

    FISCAL STUDIES, Issue 2 2003
    David Miles
    Abstract This paper uses a simple model of how households at different points on the income distribution make decisions about saving and labour supply to illustrate some of the problems government faces in designing social security systems. We show simulation results, which highlight the costs and benefits of alternative pension and income support regimes, and analyse what is happening in the UK in the light of the results. [source]


    Funding a PAYG pension system: the case of Italy

    FISCAL STUDIES, Issue 4 2001
    Lorenzo Forni
    Abstract Italy is characterised by a mature pay-as-you-go social security system and by particularly adverse population projections. Given these trends, the social security contribution rate is expected to increase above its current high level. This hinders the development of employer-provided pension funds and introduces a significant wedge between labour cost and earnings that discourages both labour demand and labour supply. Any proposal to reduce payroll taxes and to reform the system in the direction of partial funding has to cope with the state of Italian public finances. Italy has to comply with the Stability and Growth Pact that imposes constraints on budget deficit and debt trends. Using micro data from the Bank of Italy's Survey of Household Income and Wealth and official population projections, we estimate future employment trends under different demographic and macroeconomic scenarios and compute the cost of the transition. We show that it would be substantially reduced if positive effects on employment were induced by the payroll tax reduction. [source]


    The Labour Market Impact of the Working Families' Tax Credit

    FISCAL STUDIES, Issue 1 2000
    RICHARD BLUNDELL
    Abstract In October 1999, the working families' tax credit (WFTC) replaced family credit as the main package of in-work support for families with children. Among a range of stated aims, the WFTC is intended to,, improve work incentives, encouraging people without work to move into employment'. In this paper, we consider the impact of WFTC on hours and participation. To simulate labour supply responses, we use a discrete behavioural model of household labour supply with controls for fixed and childcare costs, and unobserved heterogeneity. In simulation, we experiment with a number of scenarios regarding the take-up of the credit, entry wage level and hourly childcare price. We find participation rates among single mothers to increase by around 2.2 percentage points for the base-case scenario, while for married women participation rates are modelled to fall. Our simulation results indicate a small increase in overall participation of around 30,000 individuals. [source]


    Dual job holding general practitioners: the effect of patient shortage

    HEALTH ECONOMICS, Issue 10 2009
    Geir Godager
    Abstract In 2001, a listpatient system with capitation payment was introduced in Norwegian general practice. After an allocation process where each inhabitant was listed with a general practitioner (GP), a considerable share of the GPs got fewer persons listed than they would have preferred. We examine whether GPs who experience a shortage of patients to a larger extent than other GPs seek to hold a second job in the community health service even though the wage rate is low compared with the wage rate in general practice. Assuming utility maximization, we model the effect of patient shortage on a GP's decision to contract for a second job in the community health service. The model predicts a positive relationship between patient shortage and participation in the community health service. This prediction is tested by means of censored regression analyses, taking account of labour supply as a censored variable. We find a significant effect of patient shortage on the number of hours the GPs supply to community health service. The estimated marginal effect is 1.72,hours per week. Copyright © 2008 John Wiley & Sons Ltd. [source]


    The effects of pay and job satisfaction on the labour supply of hospital consultants

    HEALTH ECONOMICS, Issue 12 2007
    Divine Ikenwilo
    Abstract There is little evidence about the responsiveness of doctors' labour supply to changes in pay. Given substantial increases in NHS expenditure, new national contracts for hospital doctors and general practitioners that involve increases in pay, and the gradual imposition of a ceiling on hours worked through the European Working Time Directive, knowledge of the size of labour supply elasticities is crucial in examining the effects of these major changes. This paper estimates a modified labour supply model for hospital consultants, using data from a survey of consultants in Scotland. Rigidities in wage setting within the NHS mean that the usual specification of the labour supply model is extended by the inclusion of job quality (job satisfaction) in the equation explaining the optimal number of hours worked. Generalised Method of Moments estimation is used to account for the endogeneity of both earnings and job quality. Our results confirm the importance of pay and non-pay factors on the supply of labour by consultants. The results are sensitive to the exclusion of job quality and show a slight underestimation of the uncompensated earnings elasticity (of 0.09) without controlling for the effect of job quality, and 0.12 when we controlled for job quality. Pay increases in the new contract for consultants will only result in small increases in hours worked. Small and non-significant elasticity estimates at higher quantiles in the distribution of hours suggest that any increases in hours worked are more likely for consultants who work part time. Those currently working above the median number of hours are much less responsive to changes in earnings. Copyright © 2007 John Wiley & Sons, Ltd. [source]


    Wage policy in the health care sector: a panel data analysis of nurses' labour supply

    HEALTH ECONOMICS, Issue 9 2003
    Jan Erik Askildsen
    Abstract Shortage of nurses is a problem in several countries. It is an unsettled question whether increasing wages constitute a viable policy for extracting more labour supply from nurses. In this paper we use a unique matched panel data set of Norwegian nurses covering the period 1993,1998 to estimate wage elasticities. The data set includes detailed information on 19 638 individuals over 6 years totalling 69 122 observations. The estimated wage elasticity after controlling for individual heterogeneity, sample selection and instrumenting for possible endogeneity is 0.21. Individual and institutional features are statistically significant and important for working hours. Contractual arrangements as represented by shift work are also important for hours of work, and omitting information about this common phenomenon will underestimate the wage effect. Copyright © 2003 John Wiley & Sons, Ltd. [source]


    A job to believe in: recruitment in the Scottish voluntary sector

    HUMAN RESOURCE MANAGEMENT JOURNAL, Issue 1 2008
    Dennis Nickson
    The voluntary sector is an important source of employment in the UK and is increasingly providing services previously provided by the public sector. However, the ability of the sector to provide such services is dependent on the quantity and quality of suitable labour. This article examines recruitment issues in seven case-study voluntary organisations offering social care in Scotland. Interviews were conducted with 137 managers and employees in these organisations. In addition, to assess potential labour supply, interviews and focus groups were conducted with careers advisers and potential employees. The findings suggest that, with a tightening labour market, uncompetitive pay and misconceptions about the sector, recruitment is a problem. However, job satisfaction is high for current employees, and potential employees whose values are commensurate with the sector might be attracted. The findings thus have relevance not just for the case-study organisations, but for HRM in the voluntary sector generally. [source]


    Still a distinctive southern European employment model?

    INDUSTRIAL RELATIONS JOURNAL, Issue 6 2008
    Maria Karamessini
    ABSTRACT Current similarities among the four southern European EU Member States,Greece, Italy, Portugal and Spain,with respect not only to labour market characteristics but also to the institutional arrangements that influence labour supply, utilisation and demand corroborate the concept of a distinctive southern European employment model. Its origins go back to common features in the pattern of socio-economic development and the political history of these countries. In the past 20 years or so, national differences in the pace and content of institutional change have increased diversity within the model and eroded some of its components. They have not, however, destroyed its unity and distinctiveness. [source]


    The dynamics of the health labour market

    INTERNATIONAL JOURNAL OF HEALTH PLANNING AND MANAGEMENT, Issue 2 2006
    Marko Vujicic
    Abstract One of the most important components of health care systems is human resources for health (HRH),the people that deliver the services. One key challenge facing policy makers is to ensure that health care systems have sufficient HRH capacity to deliver services that improve or maintain population health. In a predominantly public system, this involves policy makers assessing the health care needs of the population, deriving the HRH requirements to meet those needs, and putting policies in place that move the current HRH employment level, skill mix, geographic distribution and productivity towards the desired level. This last step relies on understanding the labour market dynamics of the health care sector, specifically the determinants of labour demand and labour supply. We argue that traditional HRH policy in developing countries has focussed on determining the HRH requirements to address population needs and has largely ignored the labour market dynamics aspect. This is one of the reasons that HRH policies often do not achieve their objectives. We argue for the need to incorporate more explicitly the behaviour of those who supply labour,doctors, nurses and other providers,those who demand labour, and how these actors respond to incentives when formulating health workforce policy. Copyright © 2006 John Wiley & Sons, Ltd. [source]


    Progressive Taxes and the Labour Market: Is the Trade,off Between Equality and Efficiency Inevitable?

    JOURNAL OF ECONOMIC SURVEYS, Issue 1 2002
    Knut Røed
    Does an income tax harm economic efficiency more the more progressive it is? Public economics provides a strong case for a definite ,yes'. But at least three forces may pull in the other direction. First, low,wage workers may on average have more elastic labour supply schedules than high,wage workers, in which case progressive taxes contribute to a more efficient allocation of the total tax burden. Second, in non,competitive labour markets, progressive taxes may encourage wage moderation, and hence reduce the equilibrium level of unemployment. And third, if wage setters have egalitarian objectives, progressive taxes may reduce the need for redistribution in pre,tax wages, and hence increase the demand for low,skilled workers. This paper surveys the theoretical, as well as the empirical literature about labour supply, taxes and wage setting. We conclude that in a second best world, the trade,off between equality and efficiency is not always inevitable. [source]


    Reservation wages, labour market participation and health

    JOURNAL OF THE ROYAL STATISTICAL SOCIETY: SERIES A (STATISTICS IN SOCIETY), Issue 3 2010
    Sarah Brown
    Summary., The concept of the reservation wage has played an important role in labour market theory, particularly in models of job search, labour supply and labour market participation. We focus on the determinants of reservation wages, with a particular focus on health, which has attracted very little attention despite its importance from a policy perspective. Using UK data we estimate an endogenous switching model which predicts reservation wages for the unemployed and market wages for the employed. Our results have important policy implications since they suggest that poor health is a major cause of economic inactivity. [source]


    The dynamic efficiency of the Ramsey model with endogenous labour participation rate

    OPTIMAL CONTROL APPLICATIONS AND METHODS, Issue 3 2001
    João Ricardo Faria
    Abstract This paper incorporates the hypothesis of labour participation rate into the Ramsey model. It is shown that the economy can be dynamically inefficient if the average productivity of capital is greater than the sum of the rate of time preference, the population growth rate, the depreciation rate and the marginal rate of substitution between labour and consumption. The modified golden rule holds when the wage rate is equal to the marginal rate of substitution between labour and consumption. However, there is no guarantee that it will happen, since labour supply is driven by capital allocation decisions. Copyright © 2001 John Wiley & Sons, Ltd. [source]


    Dragon Children: Identifying the Causal Effect of the First Child on Female Labour Supply with the Chinese Lunar Calendar,

    OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 3 2008
    James P. Vere
    Abstract Instrumental variables (IV) estimates of the effect of fertility on female labour supply have only been able to identify the causal effect of second and higher parity children. This study uses exogenous variation in fertility caused by the Chinese lunar calendar to identify the effect of the first child. Additionally, weighting formulas are presented to interpret IV estimates as weighted average treatment effects in the case of multiple endogenous variables, which are useful when children vary in intensity by both number and age. The effect of the first child is found to be much greater than that of other children. [source]