Assets, Savings, and Labor Supply,
Abstract
This paper examines the role of assets in labor supply functions. In recent work, variables measuring assets have been used with increasing frequency to measure the response of hours worked to non-wage related income. The income slopes estimated were disappointing, in that the income variable often has the wrong sign (positive) implying that leisure was an inferior good, or they were so small that compensated own-wage slopes in the labor supply equation remained negative. In addition, the estimated income response exhibited considerable instability from study to study.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1975
- Accession Number
- ADA022265
Entities
People
- James P. Smith
Organizations
- RAND Corporation