Fixed Costs and Labor Supply

Cogan, John F.

doi:10.2307/1912512

Cited by 254 publications

(115 citation statements)

References 5 publications

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“…The sample we utilize excludes two-parent households since our model of demand for irregular commodities does not take i n to account interactions between members within the household. 6 The sample includes 1 569 individuals of which 236 that is, 15 purchased irregular commodities in 1993 see the last line of Table 1 . The average total purchases of irregular commodities by individuals who did not work in the underground sector 1 440 individuals is $136 Can , while it amounts to $817 for the 129 individuals who worked in the underground sector see columns 1 and 2 .…”

Section: The Survey and Descriptive Resultsmentioning

confidence: 99%

Are Underground Workers More Likely to be Underground Consumers?

Fortin

Lacroix

Montmarquette

2000

The Economic Journal

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Ce document est publié dans l'intention de rendre accessibles les résultats préliminaires de la recherche effectuée au CIRANO, afin de susciter des échanges et des suggestions. Les Résumé / AbstractCet article étudie les effets du travail au noir sur le niveau des achats au noir des individus. On montre qu'il peut se décomposer en un effet de réseau, un effet de non-séparabilité et un effet revenu. Notre analyse empirique utilise des micro-données tirées d'une enquête réalisée au Québec pour l'année 1993. La méthode des moments généralisés nous permet de tenir compte de la censure et des erreurs de mesure sur la variable dépendante ainsi que de l'endogénéité des variables d'offre de travail qui conditionnent les décisions de consommation. Selon nos résultats, une hausse de l'offre de travail au noir accroît de façon importante le niveau des dépenses au noir. Cet effet amplifie l'impact des politiques de taxation et de contrôle fiscal sur la taille de l'économie souterraine. This paper investigates the effect of working in the underground Mots Clés :Consommation au noir, travail au noir, séparabilité, impact des politiques, estimations par la méthode des moments généralisés

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Section: The Survey and Descriptive Resultsmentioning

confidence: 99%

Are Underground Workers More Likely to be Underground Consumers?

Fortin

Lacroix

Montmarquette

2000

The Economic Journal

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“…Bourguignon and Magnac (1990) estimate a model for women that includes fixed costs and find that the uncompensated labour supply elasticity is reduced from 0.96 to 0.39. Cogan (1981) finds that the uncompensated labour supply elasticity falls from 2.45 to 0.88 after correcting for entry costs.…”

Section: The Empirical Literature On Labour Supply Elasticitiesmentioning

confidence: 97%

“…While these characteristics are also observed for non-workers, wages can be imputed for non-workers by using the estimated coefficients of the regression. Studies that explicitly take into account selection are Cogan (1981); Mroz (1987); Arellano and Meghir (1992); Blundell et al (1998) and Devereux (2004). Mroz explicitly tests for different selection models and rejects the Tobit model for more general models that allow different specifications for participation and labour supply.…”

Section: The Empirical Literature On Labour Supply Elasticitiesmentioning

confidence: 99%

The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates

2008

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SummaryThis paper performs a meta-analysis of empirical estimates of uncompensated labour supply elasticities. For the Netherlands, we find that an elasticity of 0.5 for women and 0.1 for men is a good reflection of what the literature reveals. The elasticity for men hardly differs between countries, but for women some cross-country variation is found. The increasing participation rate of women may lead to a somewhat lower elasticity in the future. Both the specification of the hours function and the estimation method are found to affect elasticity estimates.

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“…Although such a dataset is not readily obtainable, Thorat and Attewell (2007), as an exception, collected a dataset of (hypothetical) job applicants by sending different types of applications to several job offers placed in newspaper advertisements and examined the existence of "job discrimination." 5 For the studies on transaction costs associated with entry into the market, see, for instance, Cogan (1981) on married women's labor supply in the U.S., and Sadoulet et al (1998) and Key et al (2000) on corn producers' supply responses to labor and product markets in Mexico. These studies found that transaction costs matter for workers' or households' decisions on market involvement.…”

Section: Introductionmentioning

confidence: 99%

Caste discrimination and transaction costs in the labor market: Evidence from rural North India

Ito

2009

Journal of Development Economics

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This paper is an empirical attempt to quantify caste-based discrimination in the labor market using household data taken from rural North India. In the regression analysis, transaction costs associated with entry into the labor market and reservation wages are estimated simultaneously along with market wages. The estimation results provide evidence of the existence of transaction costs in the labor market and discrimination against backward classes with regard to access to regular employment. In line with previous studies, the results suggest that the achievements of India's reservation policy so far have at best been limited. In addition, a comparison between the estimates from the model employed in this paper and conventional (reduced-form) approaches shows that discrimination in labor market entry is likely to be underestimated in the conventional reduced-form approaches.JEL classification codes: D23, J22, J24, J71

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Fixed Costs and Labor Supply

Cited by 254 publications

References 5 publications

Are Underground Workers More Likely to be Underground Consumers?

Are Underground Workers More Likely to be Underground Consumers?

The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates

Caste discrimination and transaction costs in the labor market: Evidence from rural North India

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