Intertemporal Labor Supply and Involuntary Unemployment

Aufsätze referiert extern - Web of Science

Peter Haan, Arne Uhlendorff

In: Empirical Economics 44 (2013), 2, S. 661-683

Abstract

We estimate a model of intertemporal male labor supply behavior which explicitly accounts for the effect of income taxation and the transfer system. Moreover, we model the demand-side driven rationing risk that prevents agents from choosing the optimal labor supply state. Our results show that elasticities derived in an unconstrained pure choice model are significantly higher compared to a model with involuntary unemployment. This holds true for short-run and long-run labor supply elasticities.

Peter Haan

Head of Department in the Public Economics Department



JEL-Classification: C23;C25;J22;J64
Keywords: Intertemporal labor supply behavior, Involuntary unemployment, Tax and transfer system
DOI:
http://dx.doi.org/10.1007/s00181-012-0563-7