Intertemporal labor supply and involuntary unemployment

Peter Haan; Arne Uhlendorff

doi:10.1007/s00181-012-0563-7

Intertemporal labor supply and involuntary unemployment

Peter Haan
, Arne Uhlendorff

Research output: Contribution to journal › Article › peer-review

Abstract

We estimate a model of intertemporal male labor supply behavior which explicitly accounts for the effect of income taxation and the transfer system. Moreover, we model the demand-side driven rationing risk that prevents agents from choosing the optimal labor supply state. Our results show that elasticities derived in an unconstrained pure choice model are significantly higher compared to a model with involuntary unemployment. This holds true for short-run and long-run labor supply elasticities.

Original language	English
Pages (from-to)	661-683
Number of pages	23
Journal	Empirical Economics
Volume	44
Issue number	2
DOIs	https://doi.org/10.1007/s00181-012-0563-7
Publication status	Published - 1 Apr 2013
Externally published	Yes

Keywords

Intertemporal labor supply behavior
Involuntary unemployment
Tax and transfer system

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/s00181-012-0563-7

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KW - Tax and transfer system

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Intertemporal labor supply and involuntary unemployment

Abstract

Keywords

UN SDGs

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