EconStor >
University of Essex >
Institute for Social and Economic Research (ISER), University of Essex >
EUROMOD Working Paper Series, Institute for Social and Economic Research (ISER), University of Essex  >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/64904
  
Title:Welfare, labor supply and heterogeneous preferences: Evidence for Europe and the US PDF Logo
Authors:Bargain, Olivier
Decoster, André
Dolls, Mathias
Neumann, Dirk
Peichl, Andreas
Siegloch, Sebastian
Issue Date:2011
Series/Report no.:EUROMOD Working Paper EM5/11
Abstract:Following the report of the Stiglitz Commission, measuring and comparing well-being across countries has gained renewed interest. Yet, analyses that go beyond income and incorporate non-market dimensions of welfare most often rely on the assumption of identical preferences to avoid the difficulties related to interpersonal comparisons. In this paper, we suggest an international comparison based on individual welfare rankings that fully retain preference heterogeneity. Focusing on the consumption-leisure trade-off, we estimate discrete choice labor supply models using harmonized microdata for 11 European countries and the US. We retrieve preference heterogeneity within and across countries and analyze several welfare criteria which take into account that differences in income are partly due to differences in tastes. The resulting welfare rankings clearly depend on the normative treatment of preference heterogeneity with alternative metrics. We show that these differences can indeed be explained by estimated preference heterogeneity across countries - rather than demographic composition.
Subjects:welfare measures
preference heterogeneity
labor supply
Beyond GDP
JEL:C35
D63
H24
H31
J22
Document Type:Working Paper
Appears in Collections:EUROMOD Working Paper Series, Institute for Social and Economic Research (ISER), University of Essex

Files in This Item:
File Description SizeFormat
684423456.pdf1.15 MBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/64904

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.