Empirical Economics

, Volume 18, Issue 3, pp 393–415 | Cite as

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

  • Richard Blundell
  • Francois Laisney
  • Michael Lechner


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 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Andrews D (1988a) Chi-Square Diagnostic Tests for Econometric Models: Introduction and Applications.Journal of Econometrics 37:135–156Google Scholar
  2. Andrews D (1988b) Chi-Square Diagnostic Tests for Econometric Models: Theory.Econometrica 56(6):1419–1453Google Scholar
  3. Blundell RW, Laisney F (1988) A Labour Supply Model for Married Women in France.Annales d'Economie et de Statistique 11:41–71Google Scholar
  4. Blundell RW, Meghir C (1986) Selection Criteria for a Microeconometric Model of Labour Supply.Journal of Applied Econometrics 1(1):55–80Google Scholar
  5. Blundell RW, Walker I (1986) A Life Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data.Review of Economic Studies 53:539–58Google Scholar
  6. Blundell RW, Ham J, Meghir C (1987) Unemployment and Female Labour Supply.Economic Journal 97:44–64Google Scholar
  7. Blundell RW, Ham J, Meghir C (1990) Unemployment, Discouraged Workers and Female Labour Supply. Department of Economics, University College London, Discussion Paper 90-2Google Scholar
  8. Blundell RW, Peters S, Smith R (1989) The Impact of Grouping on Non-normality Diagnostics. UCL mimeoGoogle Scholar
  9. Bourguignon F, Magnac T (1990) Labour Supply and Taxation in France.Journal of Human Resources 25:358–389Google Scholar
  10. Chesher A, Irish M (1987) Residual Analysis in the Grouped and Censored Normal Linear Model.Journal of Econometrics (Annals 1987-1) 34(1/2):33–62Google Scholar
  11. Cogan JF (1981) Fixed Costs and Labour Supply.Econometrica 49:945–64Google Scholar
  12. Deaton A, Muellbauer J (1980)Economics and Consumer Behavior. Cambridge University Press: CambridgeGoogle Scholar
  13. Dagsvik J, Laisney F, Strøm S, Østervold J (1988) Female Labour Supply and the Tax-Benefit System in France.Annales d'Economie et de Statistique, 11:5–40Google Scholar
  14. Flinn C, Heckman JJ (1983) Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?Journal of Labor Economics 2:1–26Google Scholar
  15. Gabler S, Laisney F, Lechner M (1993) Seminonparametric Estimation of Binary-Choice Models with an Application to Labor-Force Participation.Journal of Business and Economic Statistics 11:61–68Google Scholar
  16. Gouriéroux C et, Monfort A (1989)Statistique et Modèles Économétriques, Économica, ParisGoogle Scholar
  17. Ham J (1982) Estimation of a Labor Supply Model with Censoring due to Unemployment and Underemployment.Review of Economic Studies 49:335–54Google Scholar
  18. Ham J (1986) On the Interpretation of Unemployment in Empirical Labour Supply Analysis. In R. W. Blundell and I. Walker (eds.),Unemployment, Search and Labour Supply, Chapter 8, 121–42. Cambridge: Cambridge University PressGoogle Scholar
  19. Ilmakunnas S, Pudney S (1990) A Model of Female Labour Supply in the Presence of Hours Restrictions.Journal of Public Economics 41:183–210Google Scholar
  20. Kay JA, Keen MJ, Morris CN (1984) Estimating Consumption from Expenditure Data.Journal of Public Economics 23:169–181Google Scholar
  21. Keen M (1986) Zero Expenditures and the Estimation of Engel Curves.Journal of Applied Econometrics 1:277–86Google Scholar
  22. König H, Laisney F, Lechner M, Pohlmeier W (1993) Do Married Women Base Their Labour Supply Decisions on Cross or Marginal Wage Rates? ZEW Discussion Paper 93-09Google Scholar
  23. Laisney F, Lechner M, Strøm S (1991) Lessons from Specification Tests for a Labour Supply Model.Annales d'Économie et de Statistique 20/21:193–217Google Scholar
  24. Lechner M (1991) Testing Logit Models in Practice.Empirical Economics 16:177–198Google Scholar
  25. Moffitt R (1988) Demographic Behavior and the Welfare State: Econometrics Issues in the Identification of the Effects of Tax and Transfer Programs. Paper presented at the Conference of the European Society for Population Economics, June, University of MannheimGoogle Scholar
  26. Mroz TA (1987) The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions.Econometrica 55:765–799Google Scholar
  27. Nakamura A, Nakamura M (1991) The Econometrics of Female labor Supply and Children.Econometrics Reviews Google Scholar
  28. Van Soest A, Kooreman P (1990) Coherency of the Indirect Translog Demand System with Binding Nonnegativity Constraints.Journal of Econometrics 44:391–400Google Scholar
  29. White H (1982) Maximum Likelihood Estimation of Misspecified Models.Econometrica 50:1–25Google Scholar
  30. White H (1983) Corrigendum.Econometrica 51:513Google Scholar

Copyright information

© Physica-Verlag 1993

Authors and Affiliations

  • Richard Blundell
    • 1
  • Francois Laisney
    • 2
    • 3
  • Michael Lechner
    • 4
  1. 1.University College London and Institute for Fiscal StudiesLondonU.K.
  2. 2.BETAUniversité Louis PasteurStrasbourg
  3. 3.Zentrum fur Europuische Wirtschaftsforschung (ZEW)MannheimGermany
  4. 4.University of Mannheim and Zentrum fur Europuische Wirtschaftsforschung (ZEW)Mannheim 1Germany

Personalised recommendations