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Labour Supply with Quantity Constraints: Estimates from a Large Sample of Canadian Workers

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  • Osberg, Lars
  • Phipps, Shelley

Abstract

This paper uses a new and very large data set (66,934 observations) to estimate labor-supply equations for Canadian men and women in 1986, taking account of quantity constraints on weeks of work. The authors present evidence that quantity constraints on available labor hours are a significant determinant of observed labor supply behavior. They conclude that desired labor supply is inelastic with respect to wages, lightly backward bending, and very similar for men and for women. Moreover, the authors find that quantity constraints in labor markets are a significant determinant of earnings inequality. Copyright 1993 by Royal Economic Society.

Suggested Citation

  • Osberg, Lars & Phipps, Shelley, 1993. "Labour Supply with Quantity Constraints: Estimates from a Large Sample of Canadian Workers," Oxford Economic Papers, Oxford University Press, vol. 45(2), pages 269-291, April.
    • Handle: RePEc:oup:oxecpp:v:45:y:1993:i:2:p:269-91
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    Citations

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    Cited by:

    1. Lars Osberg, 2003. "Long Run Trends in Income Inequality in the United States, UK, Sweden, Germany and Canada: A Birth Cohort View," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 121-141, Winter.
    2. Joachim Merz & Derik Burgert, 2004. "Wer arbeitet wann? Arbeitszeitarrangements von Selbständigen und abhängig Beschäftigten: Eine mikroökonometrische Analyse deutscher Zeitbudgetdaten," FFB-Discussionpaper 45, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg, revised Jul 2004.
    3. Sandra Dandie & Joseph Mercante, 2007. "Australian labour supply elasticities: Comparison and critical review," Treasury Working Papers 2007-04, The Treasury, Australian Government, revised Oct 2007.
    4. Benoit Dostie, 2012. "Labour Supply and Taxes: New Estimates of the Responses of Wives to Husbands’ Wages," Cahiers de recherche 12-02, HEC Montréal, Institut d'économie appliquée.
    5. Osberg, Lars, 1995. "Le chainon manquant : donnees sur l'element demande des marches du travail," Direction des études analytiques : documents de recherche 1995077f, Statistics Canada, Direction des études analytiques.
    6. Osberg, Lars, 1995. "The Missing Link - Data on the Demand Side of Labour Markets," Analytical Studies Branch Research Paper Series 1995077e, Statistics Canada, Analytical Studies Branch.
    7. Lars Osberg, 2003. "Understanding Growth and Inequality Trends: The Role of Labour Supply in the US and Germany," Canadian Public Policy, University of Toronto Press, vol. 29(s1), pages 163-184, January.
    8. Lars Osberg, 2002. "Time, Money and Inequality in International Perspective," LIS Working papers 334, LIS Cross-National Data Center in Luxembourg.
    9. de Regt, E.R., 2004. "Hourly wages and working time in the Dutch market sector 1962-1995," Research Memorandum 028, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    10. Daniel Gordon & Lars Osberg & Shelley Phipps, 2005. "Sampling variability: some observations from a labour supply equation," Applied Economics, Taylor & Francis Journals, vol. 37(18), pages 2167-2175.
    11. Erik de Regt, 2009. "Hourly wages and working time in the Dutch market sector 1962-1995," Applied Economics, Taylor & Francis Journals, vol. 41(6), pages 765-778.
    12. Shelley Phipps, 1995. "Canadian Child Benefits: Behavioural Consequences and Income Adequacy," Canadian Public Policy, University of Toronto Press, vol. 21(1), pages 20-30, March.

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