Céspedes Reynaga, Nikita - 2012
employed labor force has formal and stable jobs, we perform a fixed effects estimation as proposed by MaCurdy (1981) with a … instrumental variable for wages. We use Peruvian data from the Permanent Employment Survey of Lima. We find that neglecting wage … Frisch elasticity. We estimate Frisch elasticity at around 0.38, which indicates fairly adjustable wages and little reaction …