De Economist

, Volume 156, Issue 1, pp 25–43

The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates

Authors

  • Michiel Evers
    • Ministry of Economic Affairs
  • Ruud De Mooij
    • CPB Netherlands Bureau for Economic Policy Analysis
    • Erasmus Universiteit Rotterdam
    • Tinbergen Institute
    • Netspar
    • CESifo
    • CPB Netherlands Bureau for Economic Policy Analysis
    • Netspar

DOI: 10.1007/s10645-007-9080-z

Summary

This paper performs a meta-analysis of empirical estimates of uncompensated labour supply elasticities. For the Netherlands, we find that an elasticity of 0.5 for women and 0.1 for men is a good reflection of what the literature reveals. The elasticity for men hardly differs between countries, but for women some cross-country variation is found. The increasing participation rate of women may lead to a somewhat lower elasticity in the future. Both the specification of the hours function and the estimation method are found to affect elasticity estimates.

Keywords

labour supply uncompensated wage elasticity meta-analysis

JEL Code(s)

J22 H3

Copyright information

© Springer Science+Business Media, LLC. 2008