What Explains the Variation in Estimates of Labour Supply Elasticities?

Evers, Michiel; Mooij, Ruud de; Vuuren, Daniël van

doi:10.2139/ssrn.884430

Cited by 52 publications

(48 citation statements)

References 43 publications

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“…Hence, all key elasticities of substitution, the discount factor, and habit persistence have been set at the same value. Based on a recent metaregression (Evers, de Mooij, and van Vuuren, 2005), the elasticity of labor supply with respect to wages is set at 0.33. This elasticity is key for the response of the model to labor market reforms.…”

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confidence: 99%

Why It Pays to Synchronize Structural Reforms in the Euro Area Across Markets and Countries

Everaert¹,

Schule²

2008

IMF Staff Pap

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Simulations with the IMF's Global Economy Model, calibrated to the European Union, suggest that there are sizable long-term gains in output and employment from boosting competition in product and labor markets. Coordinating reforms across these markets in a given country is found to be beneficial: it reduces transition costs in the short run and generates synergies in the long run. However, to prevent a temporary fall in euro area consumption, synchronization across countries is needed if they are to benefit from a monetary policy reaction. IMF Staff Papers (2008) 55, 356–366. doi:10.1057/imfsp.2008.6; published online 8 April 2008

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confidence: 99%

Why It Pays to Synchronize Structural Reforms in the Euro Area Across Markets and Countries

Everaert¹,

Schule²

2008

IMF Staff Pap

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“…10 We will also include some weighted least squares (WLS) estimates to control the quality of the studies. 11 We opt for a sequential approach, in line with Knell and Stix (2003), Evers et al (2006) and Card et al (2010). Firstly, we test the significance of geographical and temporal (by decades, from the 1950s to the 2000s) moderators, in the spirit of paneldata fixed effects estimation.…”

Section: Meta-analysis Approachmentioning

confidence: 99%

“…Based on a survey of economics departments at 40 leading US universities, the authors conclude that employers bear 2 This technique is being increasingly applied in labour economics. See, among others, Jarrell and Stanley (1990) for the analysis of unions and wage gap, Card and Krueger (1995) for minimum wages and employment, Nijkamp and Poot (2005) and European Commission (2005) for real wage elasticity, Longhi et al (2006Longhi et al ( , 2007 for immigration, wages and employment, Evers et al (2006) for taxes and working hours and Card et al (2010) for active labour policies evaluation. By contrast, we are not aware of any meta-analysis applied to the economic incidence of either labour taxation or social contributions.…”

Section: Introductionmentioning

confidence: 99%

Who bears labour taxes and social contributions? A meta-analysis approach

Melguizo

González-Páramo

2012

SERIEs

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In this paper we apply the meta-regression technique to survey the empirical literature on the economic incidence of labour taxes and social security contributions. In particular, we focus on the effects of taxation on wages to test the conventional view that employees bear the burden due to lower net wages. Based on 52 empirical papers, we find that economic institutions, the tax wedge definition, and the temporal focus significantly affect the results. In the long run, workers bear between two thirds of the tax burden in Continental and Anglo-Saxon economies, and nearly 90 % in the Nordic economies. However, despite the numerous set of controlling variables, a significant part of the variability of the empirical literature remains unexplained.

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“…Evers et al [2005] performed a metaanalysis and considered 239 wage elasticities from 32 empirical studies for dierent countries.…”

Section: Wage Eectsmentioning

confidence: 99%

Collective Labor Supply of Native Dutch and Immigrant Households in the Netherlands

Klaveren

Praag

Brink

2011

Household Economic Behaviors

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We estimate a collective time allocation model, where Dutch, Surinamese/Antillean and Turkish households behave as if both spouses maximize a household utility function. We assume that paid labor and housework are the endogenous choice variables and furthermore consider household production. Surinamese/Antillean and Turkish women differ from Dutch women because they value (joint) household production more in their utility function. Surinamese/Antillean and Turkish men, on the other hand, value joint household production less then Dutch men. Turkish households are the more traditional households, in the sense that the woman is more oriented on household production, while the man is oriented on paid labor. It is often believed that the bargaining power of women in more traditional households is relatively low, but our estimation results do not support this idea. In general, the wage elasticities of Dutch, Turkish and Surinamese/Antillean households are comparable. Men and women replace housework hours by paid labor if their hourly wage rate increases but do the opposite when the hourly wage rate of the partner increases.JEL Code: D12, D13, J22.

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What Explains the Variation in Estimates of Labour Supply Elasticities?

Cited by 52 publications

References 43 publications

Why It Pays to Synchronize Structural Reforms in the Euro Area Across Markets and Countries

Why It Pays to Synchronize Structural Reforms in the Euro Area Across Markets and Countries

Who bears labour taxes and social contributions? A meta-analysis approach

Collective Labor Supply of Native Dutch and Immigrant Households in the Netherlands

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