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What Time Use Surveys Can (And Cannot) Tell Us About Labor Supply

Author

Listed:
  • Cheng Chou

    (University of Leicester)

  • Ruoyao Shi

    (Department of Economics, University of California Riverside)

Abstract

The American Time Use Survey (ATUS) accurately measures hours worked on a single day. Employing the potential outcome framework, we show that weekly labor supply parameters can be consistently estimated using the ATUS daily hours, but recovering weekly hours or their distribution is impossible due to the time specificity problem. We propose and carefully examine the properties of several new estimators. We recommend the impute estimator, a simple modification of the 2SLS estimator by imputing the dependent variable using daily subsamples. We apply it to the ATUS and find substantially different elasticity estimates from the CPS, especially for married women.

Suggested Citation

  • Cheng Chou & Ruoyao Shi, 2019. "What Time Use Surveys Can (And Cannot) Tell Us About Labor Supply," Working Papers 202017, University of California at Riverside, Department of Economics, revised Jul 2020.
    • Handle: RePEc:ucr:wpaper:202017
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    References listed on IDEAS

    as
    1. Angrist, Joshua D., 1991. "Grouped-data estimation and testing in simple labor-supply models," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 243-266, February.
    2. Cheng Chou & Ruoyao Shi, 2019. "What Time Use Surveys Can (And Cannot) Tell Us About Labor Supply," Working Papers 202017, University of California at Riverside, Department of Economics, revised Jul 2020.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Cheng Chou & Ruoyao Shi, 2020. "Utilizing Two Types of Survey Data to Enhance the Accuracy of Labor Supply Elasticity Estimation," Working Papers 202018, University of California at Riverside, Department of Economics.
    2. Cheng Chou & Ruoyao Shi, 2019. "What Time Use Surveys Can (And Cannot) Tell Us About Labor Supply," Working Papers 202017, University of California at Riverside, Department of Economics, revised Jul 2020.

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    More about this item

    Keywords

    labor supply; time specificity; impute estimator; relative asymptotic efficiency; survey methods;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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