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Although discrete hours choice models have become the workhorse in labor supply analyses. Yet, they are often criticized for being a black box due to their numerous underlying modeling assumptions, with respect to, e.g., the functional form, unobserved error components or several exogeneity...
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previous studies, ignoring an individual's time spent on home production when estimating the Frisch elasticity of labor supply … accounting all factors related to home production, I find that the "micro" Frisch elasticity is about 0.4 and the "macro" Frisch … elasticity, which accounts for extensive margin adjustments, is about 0.9. If I only account for an individual's own home …
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different wage groups. Yet, surprisingly constant wage elasticity estimates are maintained within certain wage groups over time …. In addition to those constant wage elasticity estimates, we find that the composition of working women into different … wage groups has changed considerably, resulting in shrinking wage elasticity estimates at the aggregate level. These …
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