Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 11/2003: Analyzing labor supply behavior with latent job opportunity sets and institutional choice constraints.
John K. Dagsvik () and Steinars Strøm ()
Additional contact information
John K. Dagsvik: Statistics Norway, Postal: Statistics Norway, P.O.B 8131 Dep, N-0033 Oslo , Norway, http://www.ssb.no/english/
Steinars Strøm: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Abstract: In this paper we discuss a general framework for analyzing labor supply behavior in the presence of complicated budget- and quantity constraints of which some are unobserved. The point of departure is that an individual’s labor supply decision can be considered as a choice from a set of discrete alternatives (jobs). These jobs are characterized by attributes such as hours of work, sector specific wages and other sector specific aspects of the jobs. We focus in particular on theoretical justification of functional form assumptions and properties of the random components of the model. The paper includes an empirical application based on Norwegian data, in which the labor supply of married women is estimated.
Keywords: Labor supply; non-convex budget sets; non-pecuniary job-attributes; sector-specific wages
44 pages, March 15, 2003
Full text files
Memo-11-2003.pdf
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