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

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.

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Correspondence to Daniel Van Vuuren.

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Evers, M., De Mooij, R. & Van Vuuren, D. The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates. De Economist 156, 25–43 (2008). https://doi.org/10.1007/s10645-007-9080-z

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Keywords

  • labour supply
  • uncompensated wage elasticity
  • meta-analysis

JEL Code(s)

  • J22
  • H3