Estimates of a labour supply function using alternative measures of hours of work

Abstract

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The influence of wages on parents’ allocations of time to child care and market work in the United Kingdom

“…One finding from the new surveys is that estimates of labor supply elasticities may be sensitive to the methods used to collect the underlying data. Klevmarken's (2005) analysis of the Swedish Household Panel Surveys revealed that own wage elasticities estimated using weekday time-diary data were larger than those estimated using retrospective annual work hours questions but similar to those estimated from previous-week recall questions. Within the time diaries,…”

Total work time in Spain: evidence from time diary data

“…An extensive literature confirms the reliability and validity of diary data and their superiority over other time-use surveys based on stylized questions, asking respondents to estimate time in activities on a 'typical day' (Juster and Stafford, 1985;Robinson and Godbey, 1999;Bianchi et al, 2006;Kalenkoski and Pabilonia, 2012). In the labour supply literature, for example, Klevmarken (2005) argues that information on actual hours of work from time-use surveys is more relevant than normal hours or contracted hours generally reported in stylized questions. The author shows that time-use data yields much smaller estimates of wage-rate effects compared to measures of normal hours of work, which may have important implications for tax policy design, among others.…”

How Accurate are German Work-time Data? A Comparison of Time-diary Reports and Stylized Estimates

“…2 Yet few papers focus on the implications of such discussion. One exception is Klevmarken's (2005) investigation of how the choice of data source and the applied measurement technique of paid work affect wage rate elasticities and income elasticities. Specifically, his study shows that the time-use data collection method strongly influences the estimates of wage rate effects on labour supply, especially when weekend work is taken into account.…”