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The Hausman-MaCurdy Controversy - Why Do Results Differ Between Studies?

Author

Listed:
  • Eklof, M.
  • Sacklen, H.

Abstract

The two perhaps most influencial empirical labor supply studies carried out in the US in recent years, Hausman (1981) and MaCurdy, Green & Paarsch (1990), report sharply contradicting labor supply estimates.In this paper we seek to uncover the driving forces behind the seemingly irreconcilable results. Our findings suggest that differences with respect to the estimated income and wage effects can be attributed to the use of differing nonlabor income and wage measures.

Suggested Citation

  • Eklof, M. & Sacklen, H., 1997. "The Hausman-MaCurdy Controversy - Why Do Results Differ Between Studies?," Papers 1997-30, Uppsala - Working Paper Series.
    • Handle: RePEc:fth:uppaal:1997-30
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    Keywords

    LABOUR SUPPLY ; MAXIMUM LIKELIHOOD;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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