The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates |
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| Authors: | Michiel Evers Ruud De Mooij |
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| Institution: | (1) Ministry of Economic Affairs, The Hague, The Netherlands;(2) CPB Netherlands Bureau for Economic Policy Analysis, The Hague, The Netherlands;(3) Erasmus Universiteit Rotterdam, Rotterdam, The Netherlands;(4) Tinbergen Institute, Rotterdam, The Netherlands;(5) Netspar, Tilburg, The Netherlands;(6) CESifo, Munich, Germany;(7) CPB Netherlands Bureau for Economic Policy Analysis, P.O. Box 80510, 2508 GM The Hague, The Netherlands;(8) Netspar, Tilburg, The Netherlands |
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| Abstract: | 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.
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| Keywords: | labour supply uncompensated wage elasticity meta-analysis |
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