Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94265
Authors: 
Yun, Myeong-Su
Year of Publication: 
2000
Series/Report no.: 
Working Papers, Department of Economics, Rutgers, The State University of New Jersey 1998-35
Abstract: 
We introduce a structural model which jointly estimates the full-time wage premium and female labor supply, using the piecewise-linear budget constraint method. Our model incorporates a discontinuous budget line at cut-off hours (35 hours a week), caused by the coexistence of both full- and part-time wage rates, and makes wages fully endogenous to the labor supply choice. We estimate a structural model using the female sample from March 1995 current population survey. The estimate of the full-time premium from our structural model is slightly larger than that of OLS, while Heckman's two-step method predicts a small full-time wage premium. Our estimates for labor supply elasticities lie within the ranges reported in previous research.
Subjects: 
discontinuous budget line
endogenous wages
female labor supply
full-time wage premium
piecewise-linear budget constraint method
JEL: 
C34
J22
J31
Document Type: 
Working Paper

Files in This Item:
File
Size
278.79 kB





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