scholarly journals Reservation Raises: The Aggregate Labor Supply Curve at the Extensive Margin

2021 ◽  
Author(s):  
Preston Mui ◽  
Benjamin Schoefer
Keyword(s):  
Labor Supply ◽  
Supply Curve ◽  
Extensive Margin

scholarly journals Publication and Identification Biases in Measuring the Intertemporal Substitution of Labor Supply

2021 ◽  
Author(s):  
Tomas Havranek ◽  
Roman Horvath ◽  
Ali Elminejad
Keyword(s):  
Labor Supply ◽  
Publication Bias ◽  
Model Uncertainty ◽  
Model Averaging ◽  
Extensive Margin ◽  
Real Business Cycle ◽  
Intertemporal Substitution ◽  
The Mean ◽  
Frisch Elasticity ◽  
Frequentist Model Averaging

The intertemporal substitution (Frisch) elasticity of labor supply governs the predictions of real business cycle models and models of taxation. We show that, for the extensive margin elasticity, two biases conspire to systematically produce large positive estimates when the elasticity is in fact zero. Among 723 estimates in 36 studies, the mean reported elasticity is 0.5. One half of that number is due to publication bias: larger estimates are reported preferentially. The other half is due to identification bias: studies with less exogenous time variation in wages report larger elasticities. Net of the biases, the literature implies a zero mean elasticity and, with 95% confidence, is inconsistent with calibrations above 0.25. To derive these results we collect 23 variables that reflect the context in which the elasticity was obtained, use nonlinear techniques to correct for publication bias, and employ Bayesian and frequentist model averaging to address model uncertainty.

scholarly journals Can Women Have Children and a Career? IV Evidence from IVF Treatments

2017 ◽  
Vol 107 (6) ◽  
pp. 1611-1637 ◽  
Author(s):  
Petter Lundborg ◽  
Erik Plug ◽  
Astrid Würtz Rasmussen
Keyword(s):  
Labor Market ◽  
In Vitro Fertilization ◽  
Labor Supply ◽  
Causal Effect ◽  
Treatment Success ◽  
Extensive Margin ◽  
Vitro Fertilization ◽  
Childless Women ◽  
Fertility Variation

This paper introduces a new IV strategy based on IVF (in vitro fertilization) induced fertility variation among childless women to estimate the causal effect of having children on their career. For this purpose, we use administrative data on IVF treated women in Denmark. Because observed chances of IVF success do not depend on labor market histories, IVF treatment success provides a plausible instrument for childbearing. Our IV estimates indicate that fertility effects on earnings are: (i) negative, large, and long-lasting; (ii) driven by fertility effects on hourly earnings and not so much on labor supply; and (iii) much stronger at the extensive margin than at the intensive margin. (JEL D82, J13, J16, J22, J31, J32)

Labor Supply and the Extensive Margin

2011 ◽  
Vol 101 (3) ◽  
pp. 482-486 ◽  
Author(s):  
Richard Blundell ◽  
Antoine Bozio ◽  
Guy Laroque
Keyword(s):  
Labor Supply ◽  
Extensive Margin ◽  
Extensive And Intensive Margins ◽  
The Us ◽  
Hours Of Work ◽  
The Uk ◽  
Over Time

In this paper we propose a systematic way of examining the importance of the extensive and the intensive margins of labor supply in order to explain the overall movements in total hours of work over time. We show how informative bounds can be developed on each of these margins. We apply this analysis to the evolution of hours of work in the US, the UK, and France and show that both the extensive and intensive margins matter in explaining changes in total hours.

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