scholarly journals Estimating the Effect of Unearned Income on Labor Supply, Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players

10.3386/w7001 ◽  
1999 ◽  
Author(s):  
Guido Imbens ◽  
Donald Rubin ◽  
Bruce Sacerdote
Keyword(s):  
Labor Supply ◽  
Unearned Income

Intrahousehold Bargaining, Female Autonomy, and Labor Supply: Theory and Evidence from India

2019 ◽  
Vol 18 (4) ◽  
pp. 1928-1968 ◽  
Author(s):  
Rachel Heath ◽  
Xu Tan
Keyword(s):  
Labor Market ◽  
Labor Supply ◽  
Empirical Support ◽  
Intrahousehold Bargaining ◽  
Percentage Points ◽  
Household Model ◽  
Female Autonomy ◽  
Standard Models ◽  
Unearned Income ◽  
Standard Deviations

Abstract Standard models of labor supply predict that unearned income decreases labor supply. We propose an alternative noncooperative household model in which a woman’s unearned income improves her autonomy within the household, which raises her gains from working and can increase her labor supply. We find empirical support for this model, using women’s exposure to the Hindu Succession Act in India as a source of exogenous variation in their unearned income. Exposure to the Hindu Succession Act increases a woman’s labor supply by between 3.8 and 6.1 percentage points, particularly into high-paying jobs. Autonomy increased by 0.17 standard deviations, suggesting that control of income is a potential channel for these effects. Thus, policies that empower women can have an additional impact on the labor market, which can further reinforce autonomy increases.

scholarly journals The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries

2017 ◽  
Vol 107 (12) ◽  
pp. 3917-3946 ◽  
Author(s):  
David Cesarini ◽  
Erik Lindqvist ◽  
Matthew J. Notowidigdo ◽  
Robert Östling
Keyword(s):  
Labor Supply ◽  
Dynamic Model ◽  
Household Labor ◽  
Lower Range ◽  
Household Labor Supply ◽  
Large Sample ◽  
Earnings Response ◽  
Unearned Income

We study the effect of wealth on labor supply using the randomized assignment of monetary prizes in a large sample of Swedish lottery players. Winning a lottery prize modestly reduces earnings, with the reduction being immediate, persistent, and quite similar by age, education, and sex. A calibrated dynamic model implies lifetime marginal propensities to earn out of unearned income from −0.17 at age 20 to −0.04 at age 60, and labor supply elasticities in the lower range of previously reported estimates. The earnings response is stronger for winners than their spouses, which is inconsistent with unitary household labor supply models. (JEL D14, J22, J31)

Implications of higher retirement age for the labor market

2017 ◽  
pp. 22-39 ◽  
Author(s):  
M. Ivanova ◽  
A. Balaev ◽  
E. Gurvich
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Labor Supply ◽  
Labor Force ◽  
Labor Demand ◽  
Retirement Age ◽  
Demographic Trends ◽  
Men And Women ◽  
Demographic Projections ◽  
The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

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