Description: Social Interactions in the Labor Market addresses the following questions: How do theoretical economic models and their associated econometric representations change when there are social interactions among households? How do policy implications change as the result of estimated households' social interactions? The authors present a unified theoretical and empirical representation ...

This paper surveys recent research findings concerning th& size and importance of labor-supply changes resulting from U.S. income taxes and transfers. Our review of the literature of recent years leads us to conclude that the aggregate amount of work reduction that is attributable to taxes and transfers is relatively modest. Moreover, this reduction may be partly offset by the beneficial effect...

The McElroy-Horney Nash-bargaining model of family demand behavior relaxes the restriction that nonearned income of husband and wife has the identical effect on family labor supply and commodity demands. This restriction of the neoclassical model offamily behavior is tested for the determination of husband and wife labor supply andfertility based on the 1981 Socioeconomic Survey of Thailand. Th...

In this paper we examine the link between wage inequality and consumption inequality using a life cycle model that incorporates household consumption and family labor supply decisions. We derive analytical expressions based on approximations for the dynamics of consumption, hours, and earnings of two earners in the presence of correlated wage shocks, non-separability and asset accumulation deci...

Rogerson and Wallenius (2013) draw an incorrect inference about a labor supply elasticity at an intensive margin from premises about an option to work part time that retiring workers decline. We explain how their false inference rests on overgeneralizing outcomes from a particular example and how Rogerson and Wallenius haven’t identified an economic force beyond the two – indivisible labor and ...

This study investigates the structure and trends of the labor market in China in the economic transition. Based on two large-scale repeated surveys, we cover a variety of rarely explored issues related to the labor market in China. These issues include labor market participation and various employment such as second jobs and post retirement employment, labor supply issues like working hours, wo...

The dominant feature of the female labor force in the United States across the twentieth century is its striking and large increase. But continuity in the increase may be an illusion. Women’s paid employment may have been permanently altered by certain events. The 1940s have been viewed as such a watershed decade. Labor force changes from 1940 to 1945 were huge. Around 14 million men were mobil...

The canonical model of labor supply is extended to account for subsistence needs and a frequently rigid division of labor within families (gender). Various theories that have been put forward are thus reconciled, in particular with respect to the distinct work choices of the poor. The model predicts negative labor supply elasticities for secondary workers at low wage rates and positive ones at ...

Previous empirical papers find that single mothers respond to EITC changes through the labor force participation (extensive) margin, not through the hours (intensive) margin. This is not predicted by standard labor supply models. My paper investigates labor supply effects of the EITC with a structural model, augmented with two factors that limit workers’ hours choices: costs of working and diff...

This paper uncovers a counter-intuitive effect of international trade on female labor shares: whenever trade expands sectors intensive in female labor, female labor shares drop. When capital complements female labor more than male labor, the following mechanism operates: Expansions of sectors intensive in female labor come along with contractions of sectors intensive in male labor. Thus, male l...