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dc.contributor.authorHarris, Mark N.en_US
dc.contributor.authorDUNCAN, ALANen_US
dc.date.accessioned2014-05-22T09:44:22Z
dc.date.available2014-05-22T09:44:22Z
dc.date.issued2002-09en_US
dc.date.submitted2002-09-12en_US
dc.identifier.citationHarris, Mark N. and Duncan, Alan (2002) Intransigencies in the labour supply choice.en_US
dc.identifier.isbn0734025410en_US
dc.identifier.issn13284991en_US
dc.identifier.urihttp://hdl.handle.net/11343/33651
dc.descriptionISBN 0734025410, MIWP no. 17/2002. ISSN 13284991en_US
dc.description.abstractThere have been significant recent advances in the estimation of labour supply models. Here the hours continuum is split into a number of discrete options and the preferred choice obtained as the solution to a constrained utility maximisation problem. However, the underlying probabilities of an individual being in a particular hours state, are assumed to be those given by standard Logit-type ones. As is well known, such a specification embodies the underlying Independence of Irrelevant Alternatives (IIA) property, which is likely to be violated in a model of labour supply choices. Moreover, if such models are used in microsimulation, they implicitly assume that individuals are able to change their observed hours state at the margin following a policy reform. This paper suggests an alternative general (non-IIA) specification for these probabilities, which can additionally incorporate the fact that: individuals may be captive to certain choices (for example, due to institutional reasons). Moreover, this model has the benefit that when used for microsimulation, the reform has to work harder to coax individuals out of the captive hours states. The results suggest that, for sole parents, the Logit model is misspecified and there is a significant amount of captivity, most notably to full-time employment hours. The effect of such captivity on microsimulation is illustrated by considering a range of actual and hypothetical policy reformen_US
dc.formatapplication/pdfen_US
dc.languageengen_US
dc.relation.isversionofhttp://www.ecom.unimelb.edu.au/iaesrwww/wp/wp2002n17.pdfen_US
dc.subjectLabour supplyen_US
dc.subjectdiscreet choiceen_US
dc.subjectinstitutional effectsen_US
dc.subjectsimulated policy responseen_US
dc.subjectJEL H25en_US
dc.subjectbusiness taxes and subsidies.en_US
dc.titleIntransigencies in the labour supply choiceen_US
dc.typePreprinten_US
melbourne.peerreviewNon Peer Revieweden_US
melbourne.affiliation.departmentEconomics and Commerce: Melbourne Institute of Applied Economic and Social Researchen_US
melbourne.source.month09en_US
melbourne.elementsidNA
melbourne.contributor.authorHARRIS, MARK NORMAN
melbourne.accessrightsOpen Access


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