Flexible Labor Supply Models Bargain, Olivier

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Bargain, Olivier
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Economics Letters
Labour market Analysis ; Labor market -- Analysis; Economics
To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.econlet.2009.06.019 Byline: Olivier Bargain Keywords: Multinomial logit; Labor supply; Taxation Abstract: Discrete-choice models of labor supply have become very popular for ex ante evaluations of policy reforms as they easily account for non-convex budget sets. We test the constraints imposed in practice on these models and suggest a fully flexible model that significantly improves fit. Author Affiliation: UCD, Ireland IZA, Germany CHILD, Italy Article History: Received 30 April 2008; Revised 17 June 2009; Accepted 22 June 2009
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