Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/119533
Authors: 
Dagsvik, John K.
Jia, Zhiyang
Year of Publication: 
2014
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 22/2014
Abstract: 
This paper discusses aspects of a framework for modeling labor supply where the notion of job choice is fundamental. In this framework, workers are assumed to have preferences over latent job opportunities belonging to worker-specific choice sets from which they choose their preferred job. The observed hours of work and wage is interpreted as the job-specific hours and wage of the chosen job. The main contribution of this paper is an analysis of the identification problem of this framework under various conditions, when conventional cross-section micro-data are applied. The modeling framework is applied to analyze labor supply behavior for married/cohabiting couples using Norwegian micro data. Specifically, we estimate two model versions with in the general framework. Based on the empirical results, we discuss further qualitative properties of the model versions. Finally, we apply the preferred model version to conduct a simulation experiment of a counterfactual policy reforms.
Subjects: 
labor supply
non-pecuniary job attributes
latent choice sets
random utility models
identification
JEL: 
J22
C51
Document Type: 
Working Paper

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