Article

Empirical Economics

, Volume 18, Issue 3, pp 393-415

Alternative interpretations of hours information in an econometric model of labour supply

  • Richard BlundellAffiliated withUniversity College London and Institute for Fiscal Studies
  • , Francois LaisneyAffiliated withBETA, Université Louis PasteurZentrum fur Europuische Wirtschaftsforschung (ZEW)
  • , Michael LechnerAffiliated withUniversity of Mannheim and Zentrum fur Europuische Wirtschaftsforschung (ZEW)

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Abstract

This paper examines the labour supply behaviour of married women in France. A sequence of models is specified and estimated which incorporate different amounts of information on observed weekly hours. In all models the distinction is drawn between search and non-participation among non-workers. We provide extensive specification diagnostics, including Heckman-Andrews tests, as well as Hausman tests for the comparison of different handlings of the hours information. It turns out that distinguishing between part-time, full-time and long hours gives virtually the same results as treating observed hours as reflecting desired hours.

JEL Classification System-Numbers

J22 C52 C24