S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
FIEF - Trade Union Institute for Economic Research Working Paper Series, FIEF - Trade Union Institute for Economic Research

No 147:
Identifying Interdependent Behavior in an Empirical Model of Labor Supply

Thomas Aronsson (), S÷ren Blomquist () and Hans SacklÚn

Abstract: In this paper we test a particular form of interdependent behavior, namely the hypothesis that individuals┤ choices of hours of work are influenced by the average hours of work in a social reference group. There are problems to empirically disentangle the effects of interdependent behavior and preference variation across groups. We show that panel data or data from several points in time are needed. In the empirical analysis we combine cross-section data from 1973, 1980 and 1990. Our results support the hypothesis of interdependent behavior. The implication is that conventional tax policy predictions, in which preference interdependencies are neglected, will tend to underestimate the effect of a tax reform on hours of work. Our point estimates suggest that conventional calculations would capture only about a third of the actual change in hours of work.

Keywords: Labor supply; interdependent preferences; nonlinear taxes; (follow links to similar papers)

JEL-Codes: C51; H31; J22; (follow links to similar papers)

26 pages, October 28, 1998

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

WP147.pdf    PDF-file (115kB) 
Download Statistics
This paper is published as:
Aronsson, Thomas, S÷ren Blomquist and Hans SacklÚn, (1999), 'Identifying Interdependent Behavior in an Empirical Model of Labor Supply', Journal of Applied Econometrics, Vol. 14, No. 6, pages 607-626



Questions (including download problems) about the papers in this series should be directed to Sune Karlsson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:fiefwp:0147 This page was generated on 2014-12-14 19:22:15