Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, School of Business, Economics and Law, University of Gothenburg Working Papers in Economics

No 18:
Household Labor Supply and Welfare Participation in Sweden

Lennart Flood, Jörgen Hansen () and Roger Wahlberg ()

Abstract: Using a sample of Swedish households, we estimate a household labor supply model assuming that preferences for consumption and leisure can be described by a direct translog utility function. The labor supply and welfare participation decisions are treated as a discrete choice problem, and we assume that these choices follow a simple conditional logit rule. In addition, we allow unobserved individual- specific effects to be correlated across alternatives. We assume that these unobserved effects are drawn from a discrete distribution, and the correlation across alternatives is modeled using factor-loading techniques. Classification error in hours is allowed for by using a multiplicative measurement error specification. The estimates from the structural model yield inelastic labor supply among husbands and positive wage elasticity for wives. Further, the cross elasticities are close to zero.

Keywords: Labor Supply; Welfare Participation; Unobserved Heterogeneity; Factor Loading; Tax Simulation.; (follow links to similar papers)

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

27 pages, November 28, 1999

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:

gunwpe0018.pdf.zip    PDF-file (zipped) (176kB) 
gunwpe0018.pdf    PDF-file (212kB) 
gunwpe0018.ps.zip    PKZipped PostScript (121kB) 
gunwpe0018.ps    PostScript file (532kB) 
Download Statistics

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

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:gunwpe:0018 This page was generated on 2014-12-14 19:22:21