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New Methods for Estimating Labor Supply Functions: A Survey

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  • James J. Heckman
  • Thomas E. MaCurdy

Abstract

This paper surveys new methods for estimatifg labor supply functions. A unified framework of analysis is presented. All recent models of labor supply are special cases of a general index function model developed for the analysis o dummy endogenous variables.

Suggested Citation

  • James J. Heckman & Thomas E. MaCurdy, 1982. "New Methods for Estimating Labor Supply Functions: A Survey," NBER Working Papers 0858, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:0858
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    References listed on IDEAS

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    1. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-1143, Nov.-Dec..
    2. T. J. Wales & A. D. Woodland, 1979. "Labour Supply and Progressive Taxes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 46(1), pages 83-95.
    3. Reuben Gronau, 1973. "Wage Comparisons -A Selectivity Bias," NBER Working Papers 0013, National Bureau of Economic Research, Inc.
    4. Jerry A. Hausman, 1980. "The Effect of Wages, Taxes, and Fixed Costs on Women's Labor Force Participation," NBER Chapters, in: Econometric Studies in Public Finance, pages 161-194, National Bureau of Economic Research, Inc.
    5. Rosen, Harvey S, 1976. "Taxes in a Labor Supply Model with Joint Wage-Hours Determination," Econometrica, Econometric Society, vol. 44(3), pages 485-507, May.
    6. R. E. Hall, 1970. "Wages, Income and Hours of Work in the U. S. Labor Force," Working papers 62, Massachusetts Institute of Technology (MIT), Department of Economics.
    7. Anthony J. Pellechio, 1979. "The Estimation of Labor Supply Over Kinked Budget Constraints: Some New Econometric Methodology," NBER Working Papers 0387, National Bureau of Economic Research, Inc.
    8. Johnson, Thomas, 1972. "Qualitative and Limited Dependent Variables in Economic Relationships," Econometrica, Econometric Society, vol. 40(3), pages 455-462, May.
    9. Ben-Porath, Yoram, 1973. "Labor-Force Participation Rates and the Supply of Labor," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 697-704, May-June.
    10. Burtless, Gary & Hausman, Jerry A, 1978. "The Effect of Taxation on Labor Supply: Evaluating the Gary Negative Income Tax Experiments," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 1103-1130, December.
    11. Rosett, Richard N & Nelson, Forrest D, 1975. "Estimation of the Two-Limit Probit Regression Model," Econometrica, Econometric Society, vol. 43(1), pages 141-146, January.
    12. George J. Borjas & James J. Heckman, 1978. "Labor Supply Estimates For Public Policy Evaluation," NBER Working Papers 0299, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Casey B. Mulligan, 1998. "Microfoundations and macro implications of indivisible labor," Discussion Paper / Institute for Empirical Macroeconomics 126, Federal Reserve Bank of Minneapolis.
    2. John Baffoe-Bonnie, 2001. "The Impact of Income Taxation on the Labor Supply of Part-time and Full-time Workers," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(1), pages 107-128.
    3. Leora Friedberg, 2000. "The Labor Supply Effects of the Social Security Earnings Test," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 48-63, February.
    4. Carolyn Heinrich & Jeffrey Wenger, 2002. "The Economic Contributions of James J. Heckman and Daniel L. McFadden," Review of Political Economy, Taylor & Francis Journals, vol. 14(1), pages 69-89.
    5. Yun, Myeong-Su, 1999. "Generalized Selection Bias and The Decomposition of Wage Differentials," IZA Discussion Papers 69, Institute of Labor Economics (IZA).

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