The labor supply elasticity of an individual household and the aggregate labor supply elasticity of all households can … distribution of reservation wages. This article presents a model economy where earnings and wealth distributions are comparable to … those in the microdata. The aggregate labor supply elasticity of such an economy is around one — greater than the typical …

that results are very sensitive to the treatment of hourly wages in the estimation. For example, different (sensible …) choices concerning the modeling of the underlying wage distribution and especially the imputation of (missing) wages lead to …

that results are very sensitive to the treatment of hourly wages in the estimation. For example, different (sensible …) choices concerning the modeling of the underlying wage distribution and especially the imputation of (missing) wages lead to …

between preferences and wages is key. To overcome this restriction, we propose a flexible estimation strategy that nests … elasticities derived from microeconometric models can also be explained by modeling assumptions with respect to wages. Specifically … very sensitive to the treatment of wages. In particular, the often-made but highly restrictive independence assumption …