Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/149544
Authors: 
Battisti, Michele
Michaels, Ryan
Park, Choonsung
Year of Publication: 
2016
Series/Report no.: 
Ifo Working Paper 222
Abstract: 
Estimates of labor supply elasticities can be sensitive to the source of identifying variation. Thispaper’s model of production complementarities helps to interpret conflicting evidence.Complementarities attenuate working time adjustments to idiosyncratic, or individual-specific,variation in work incentives. Complementarities do not restrict, however, responses to firm-wideshocks; the latter is mediated by preference parameters. Estimating the model using matchedfirm-worker data, the paper disentangles production from preference parameters. The Frischelasticity along the intensive margin is found to be around 0.5. A quasi-experimental approach,using idiosyncratic variation in work incentives, would find an elasticity less than half this.
Subjects: 
Intensive margin
production complementarities
bargaining
employee-employer data
JEL: 
J22
J23
J31
Document Type: 
Working Paper

Files in This Item:
File
Size





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