The sensitivity of structural labor supply estimations to modeling assumptions

"There is still considerable dispute about the magnitude of labor supply elasticities. While differences in estimates especially between micro and macro models are recently attributed to frictions and adjustment costs, we show that the variation in elasticities derived from structural labor sup...

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Bibliographic Details
Main Authors: Loeffler, Max, Peichl, Andreas, Siegloch, Sebastian
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2018
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19399941124911171239-The-sensitivity-of-structural-.htm
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author Loeffler, Max
Peichl, Andreas
Siegloch, Sebastian
author_facet Loeffler, Max
Peichl, Andreas
Siegloch, Sebastian
collection Library items
description "There is still considerable dispute about the magnitude of labor supply elasticities. While differences in estimates especially between micro and macro models are recently attributed to frictions and adjustment costs, we show that the variation in elasticities derived from structural labor supply models can also be explained by modeling assumptions. Specifically, we estimate 3,456 different models on the same data each representing a plausible combination of frequently made choices. While many modeling assumptions do not systematically affect labor supply elasticities, our controlled meta-analysis shows that results are very sensitive to the treatment of hourly wages in the estimation. For example, different (sensible) choices concerning the modeling of the underlying wage distribution and especially the imputation of (missing) wages lead to point estimates of elasticities between 0.2 and 0.65. We hence conclude that researchers should pay more attention to the robustness of their estimations with respect to the wage treatment."
format TEXT
geographic Germany
id 19399941124911171239_af4fa92d935f403c811826a0104db38f
institution ETUI-European Trade Union Institute
is_hierarchy_id 19399941124911171239_af4fa92d935f403c811826a0104db38f
is_hierarchy_title The sensitivity of structural labor supply estimations to modeling assumptions
language English
physical 27 p.
Digital
publishDate 2018
publisher Bonn
IZA
spellingShingle Loeffler, Max
Peichl, Andreas
Siegloch, Sebastian
labour supply
wages
wage policy
taxation
The sensitivity of structural labor supply estimations to modeling assumptions
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=133994695117
title The sensitivity of structural labor supply estimations to modeling assumptions
topic labour supply
wages
wage policy
taxation
url https://www.labourline.org/KENTIKA-19399941124911171239-The-sensitivity-of-structural-.htm