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Labor Supply Elasticities: Overcoming Nonclassical Measurement Error Using More Accurate Hours Data / Garry Barrett, Daniel S. Hamermesh.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Barrett, Garry.
Contributor:
National Bureau of Economic Research.
Hamermesh, Daniel S.
Series:
Working Paper Series (National Bureau of Economic Research) no. w22920.
NBER working paper series no. w22920
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Labor Supply Elasticities
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2016.
Summary:
We measure the impact of measurement error in labor-supply elasticities estimated over recalled usual work hours, as is ubiquitous in the literature. Employing hours of work in diaries collected by the American Time Use Survey, 2003-12, along with the same respondents' recalled usual hours, we show that the latter yield elasticities that are positively biased. We argue that this bias arises from the salience on recalled hours of differences in wage rates.
Notes:
Print version record
December 2016.

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