The aim of this paper is to apply recently proposed individual welfare measures in the context of random utility models of labour supply. Contrary to the standard practice of using reference preferences and wages, these measures preserve preference heterogeneity in the normative step of the...

We apply recently proposed individual welfare measures in the context of preference heterogeneity, derived from structural labour supply models. Contrary to the standard practice of using reference preferences and wages, these measures preserve preference heterogeneity in the normative step of...

This study was prepared by Martin Schlotter while he was working with the Ifo Institute for Economic Research. It was completed in June 2011 and accepted as a doctoral thesis by the Department of Econcomics at the University of Munich in November 2011. It addresses the effects of different early...