Manning proposes that the ‘traditional’ monopsony model, once regarded as an analytical curiosity, be adopted as a widely-applicable description of firms’ behavior in labor markets. In Manning’s view, search frictions in the labor market generate upwardsloping labor supply curves to individual firms even when firms are small relative to the labor market. Thus a model of ‘monopsonistic competiti...

This paper uses CPS data to examine changes in single women’s labor supply elasticities in recent decades. Specifically, the authors investigate trends in how single women’s hours of work and labor force participation rates responded to both wages and income over the years 1979–2003. Results from the base specification suggest that over the observation period, hours wage elasticities decreased ...

This paper examines how Japanese wives react to their husbands’ involuntary job loss and tests the existence of complementarity of a wife’s labor supply to her husband’s. Utilizing panel data on Japanese households from 1993 to 2004, we found that wives’ labor supply is stimulated when husbands suffer involuntary job loss. The detailed statistics show that not only do working wives raise their ...

This paper studies pre-eligibility-age labor market disincentives created by the Supplemental Security Income (SSI) program. Asset and income limits might induce individuals nearing the eligibility age to work less. We exploit states’ supplementation of federal SSI benefits to estimate the effects of SSI on pre-retirement labor supply, using SIPP data. We find some evidence that generous SSI be...

We investigate the effect of immigration on the labor supply of skilled native women. We present a simple time-use model that predicts that a reduction in the price of household services (such as child rearing, cooking or cleaning) should lead to an increase in the labor supply of skilled women with family responsibilities (such as caring for young children, elderly dependents, or a retired hus...

This paper examines the potential causes of the “ripple effect” of minimum wages. This wage spillover is thought to result from labor demand substitution: where the rising minimum increases the demand for more-skilled workers who become relatively inexpensive. However, the rising minimum also affects the relative wages across hedonically distinct occupations because it lowers compensating wage ...

This work presents new evidence on the effect of husbands’ health insurance on wives’ labor supply. Previous cross-sectional studies have estimated a significant negative effect of spousal coverage on wives’ labor supply. However, these estimates potentially suffer from bias due to the simultaneity of wives’ labor supply and the health insurance status of their husbands. This paper attempts to ...

In-Work Benefits for Married Couples: An Ex-Ante Evaluation of EITC and WTC Policies in Italy This paper investigates labor supply and redistributive effects of in-work benefits for Italian married couples using a tax-benefit microsimulation model and a multi-sectoral discrete choice model of labor supply. We consider two in-work benefit schemes following the key principles of the Earned Income...

In this paper we discuss a general framework for analyzing labor supply behavior in the presence of complicated budgetand quantity constraints of which some are unobserved. The individual’s labor supply decision is viewed as a choice from a set of discrete alternatives (jobs). These jobs are characterized by attributes such as hours of work, sector specific wages and other sector specific aspec...

We study the Danish unemployment experience 1905-92 using a common trends model with cointegration constraints. To justify the identifying assumptions about the cointegration vectors and the common trends we present a simple macroeconomic model of the labor market. The model determines the long run behavior of labor productivity, employment, unemployment, real product and real consumer wages. T...