Human capital and the intertemporal substitution for leisure: empirical evidence for Spain

Abstract In this paper we provide the first estimate of intertemporal substitution for leisure in Spain, accounting impact human capital accumulation. This would allow uncovering whether labour supply Spanish workers is affected by capital. Our empirical strategy consists estimating equation with and without capital, what allows to detect hypothetical estimation biases associated omitting To that end, build a pseudo-panel data set combining Family Expenditure Survey Labour over period 1987–1997. While model ignores accumulation provides an elasticity about 0.25, comparable previously available estimates Spain other economies, 0.5, confirms existence bias former estimates. Finally, larger younger cohorts than older ones.