The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates

Summary This paper performs a meta-analysis of empirical estimates of uncompensated labour supply elasticities. For the Netherlands, we find that an elasticity of 0.5 for women and 0.1 for men is a good reflection of what the literature reveals. The elasticity for men hardly differs between countrie...

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Bibliographic Details
Published in:De Economist (Netherlands) 2008-03, Vol.156 (1), p.25-43
Main Authors: Evers, Michiel, De Mooij, Ruud, Van Vuuren, Daniel
Format: Article
Language:English
Subjects:
Economic Policy
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Elasticity
Elasticity of demand
Estimates
Income elasticity
J22
Labor supply
Labour force
Labour supply
Meta-analysis
Microeconomics
Netherlands
Participation
Public Finance
Studies
Tax rates
Tax reform
Taxation
uncompensated wage elasticity
Wage levels
Wage rates
Wage structure
Wages & salaries
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Summary:Summary This paper performs a meta-analysis of empirical estimates of uncompensated labour supply elasticities. For the Netherlands, we find that an elasticity of 0.5 for women and 0.1 for men is a good reflection of what the literature reveals. The elasticity for men hardly differs between countries, but for women some cross-country variation is found. The increasing participation rate of women may lead to a somewhat lower elasticity in the future. Both the specification of the hours function and the estimation method are found to affect elasticity estimates.
ISSN:0013-063X
1572-9982
DOI:10.1007/s10645-007-9080-z