Nonparametric structural estimation of labor supply in the presence of censoring

Liang, Che-Yuan

doi:10.1016/j.jpubeco.2011.08.009

Cited by 9 publications

(2 citation statements)

References 41 publications

(40 reference statements)

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“…Third, we linearize the budget set and employ an instrumental variables approach that relies on strong identification assumptions ). An alternative is to estimate a labor supply function incorporating the entire budget set (Burtless and Hausman, 1978;Blomquist and Newey, 2002;Liang, 2011;Kumar, 2012).We also do not structurally model fixed costs and associated discontinuity in the labor supply curve and non-convexities in the budget constraint and instead rely on reduced form methods. Nevertheless, our tax policy implications are relatively unaffected by omission of work costs (Heim and Meyer, 2004).…”

Section: Discussionmentioning

confidence: 99%

Declining Female Labor Supply Elasticities in the U.S. And Implications for Tax Policy: Evidence from Panel Data

Kumar

Liang

2015

SSRN Journal

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Recent work has provided compelling evidence of a long-term decline in US female labor supply elasticities with respect to wages and to income. While previous work used crosssectional data from the Current Population Survey (CPS), we reexamine the trend for married women using panel data from the Panel Study of Income Dynamics (PSID) from 1980 to 2006. We find evidence in support of a long-term decline in married females' labor supply elasticities on the participation margin, but less so on the hours margin. We also extend the analysis to investigating the implications of these results on welfare effects of tax reforms. Policy simulations indicate that shrinking elasticities, mostly concentrated on the participation margin, have contributed to a dramatic decline in welfare gains from actual and potential tax reforms since the 1980's.

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Section: Discussionmentioning

confidence: 99%

Declining Female Labor Supply Elasticities in the U.S. And Implications for Tax Policy: Evidence from Panel Data

Kumar

Liang

2015

SSRN Journal

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“…Kumar and Liang (2016) report results with similar magnitudes and claim that income elasticity of labour supply is declining in the USA. 2 A study using changes made to the tax and allowance system in Sweden finds similar results, despite showing considerable variance over time among population groups (Liang 2012).…”

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confidence: 88%

The effect of child allowances on female labour supply: evidence from Israel

Mazar¹,

Reingewertz

2023

Economica

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This study estimates the effect of the sharp reduction in Israel's child allowances in the early 2000s on female labour supply. The study uses the difference‐in‐differences method to estimate changes in the labour supply of Israeli women with more children (four or five) compared to changes in the labour supply of women with fewer children (two or three). The results show an increase of approximately 3.1 percentage points (4.4%) in the labour supply of women with four or five children, relative to that of women with two or three children. These numbers translate to an income elasticity of labour supply in the range −0.50 to −0.81. Finally, we document the heterogeneity of these effects and provide several tests of their validity.

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The rise in female employment and the role of tax incentives. An empirical analysis of the Swedish individual tax reform of 1971

Selin

2013

Int Tax Public Finance

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Nonparametric structural estimation of labor supply in the presence of censoring

Cited by 9 publications

References 41 publications

Declining Female Labor Supply Elasticities in the U.S. And Implications for Tax Policy: Evidence from Panel Data

Declining Female Labor Supply Elasticities in the U.S. And Implications for Tax Policy: Evidence from Panel Data

The effect of child allowances on female labour supply: evidence from Israel

The rise in female employment and the role of tax incentives. An empirical analysis of the Swedish individual tax reform of 1971

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