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dc.contributor.authorGonzález, Robertoen_US
dc.contributor.authorSala, Hectoren_US
dc.date.accessioned2012-01-24en_US
dc.date.accessioned2012-02-07T10:48:28Z-
dc.date.available2012-02-07T10:48:28Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:101:1-201110263314-
dc.identifier.urihttp://hdl.handle.net/10419/55099-
dc.description.abstractThis paper provides estimates for the Mercosur countries of the Frisch elasticity - i.e., the elasticity of substitution between worked hours and real wages holding constant the marginal utility of wealth. We find a strong heterogeneity, with estimated elasticities ranging from 12.8 in Argentina to -13.1 in Paraguay. Brazil and Uruguay are in between, both with negative values of -1.9 and -1.4, respectively. We argue that the existence of severe liquidity constraints is the main reason behind the negative estimates found in Brazil, Paraguay and Uruguay. The heterogeneity of these estimates is the outcome of differences in many relevant economic dimensions - ranging from sectorial specialization to welfare state provisions and labor market specificities - all of them crucially affecting the socioeconomic situation of individuals. The diversity of Frisch elasticities calls for the development of a cross-country (rather than a within-country) policy approach, since they crucially affect the dynamics of the business cycle and business cycle synchronization is a step prior to the design of macro-convergence policies in the Mercosur context.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5993en_US
dc.subject.jelJ22en_US
dc.subject.jelJ82en_US
dc.subject.jelD91en_US
dc.subject.ddc330en_US
dc.subject.keywordFrisch elasticityen_US
dc.subject.keywordlabor supplyen_US
dc.subject.keywordliquidity constraintsen_US
dc.subject.keywordMercosuren_US
dc.subject.keywordlife-cycle modelsen_US
dc.subject.keywordpseudo-panel (synthetic panel)en_US
dc.subject.stwArbeitszeiten_US
dc.subject.stwReallohnen_US
dc.subject.stwSubstitutionselastizitäten_US
dc.subject.stwArbeitsangeboten_US
dc.subject.stwVerschuldungsrestriktionen_US
dc.subject.stwLebenszyklusen_US
dc.subject.stwSchätzungen_US
dc.subject.stwMERCOSUR-Staatenen_US
dc.titleThe Frisch elasticity in the Mercosur countries: A pseudo-panel approachen_US
dc.typeWorking Paperen_US
dc.identifier.ppn684016087en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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