Abstract
The purpose of this paper is to demonstrate the effects of the selection of measures of labour activity on the conclusions that are derived from the analysis of individual labour supply. The results of the analysis using three commonly specified single measures (Annual Hours Worked, Hours Worked per Week, and Weeks Worked per Year) as the dependent variable in TOBIT equations are compared with those obtained using a PROBIT-2SLS in which the individual labour supply is measured by Hours Worked per Week and Weeks Worked per Year. The RHS variables are those that are used in earlier individual labour supply studies and are the same in all of the models analysed. Among the findings are (1) wage rate effects that are quite strong in single equation models and disappear when a multi-equation approach is used, (2) the effects of children on labour supply is more complex than in indicated in single equation results and (3) duration dependence is much stronger than indicated results using a single measure of indiv...
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
