INCOME AND SUBSTITUTION EFFECTS IN A FAMILY LABOR SUPPLY MODEL.
Abstract
A review is presented of the effect of the tax rate and the market wage rate on labor supply. The discussion of factors influencing labor supply is used as a foundation for the development of a family labor supply model. The purpose of the model is to specify more precisely the nature of income and relative price effects in labor supply equations and to show how coefficients estimated using various specifications of regression equations can be interpreted. A description is presented of the data used in the empirical research on the effect of income and wage rates on average hours of work per week and per year of male family heads. The results of the research are reported. Income and wage rate effects on the labor force participation rates of married women and of males comprising a large fraction of the total work force reported in three earlier studies are reinterpreted to obtain estimates of compensated wage effects. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1966
- Accession Number
- AD0643692
Entities
People
- Marvin H. Kosters
Organizations
- RAND Corporation