the micro level means that the aggregate labour supply elasticity is not a structural parameter: any aggregate elasticity …

instrument. We illustrate our results through four applications: estimating the inverse elasticity of labor supply, estimating …

of 2.0 to 3.0. With elasticities of this magnitude, wages and employment depend on both supply and demand factors, with …

labor supply elasticity of 0.33 on the intensive margin and 0.25 on the extensive margin after accounting for frictions …

beyond those of expected utility theory. It is shown that the curvature of the utility function is directly related to the … ratio of the income elasticity of labor supply to the wage elasticity, holding fixed the degree of complementarity between … consumption and leisure. The degree of complementarity can in turn be inferred from data on consumption choices when employment is …

labor supply elasticities were small, recent work has identified three key reasons that the aggregate elasticity may be … occur along both the hours per worker and employment margins has led economists to misinterpret the implications of previous … estimates for aggregate labor supply. Third, structural estimation of responses along the extensive (i.e., employment) margin …

, and that previous employment tends to raise the probability of subsequent employment …