Nonparametric Panel Estimation of Labor Supply
Bibliographic Data
| ID | 19419482 |
|---|---|
| Authors | Gaosheng Ju (Fudan University), Li Gan (0009-0009-3869-569X, Research Institute of Economics and Management, Southwestern University of Finance and Economics, China; and Department of Economics, Texas A&M University, College Station, TX 77843-4228), Qi Li (0000-0003-3042-3584, International School of Economics and Management, Capital University of Economics and Business, China; Department of Economics, Texas A&M University, College Station, TX 77843-4228) |
| Year | 2019 |
| Volume | 37 |
| Issue | 2 |
| Pages | 260-274 |
| Publication date | 2019-04-03 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Business and Economic Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0735-0015 • E-ISSN: 1537-2707 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/07350015.2017.1321546 |
| OpenAlex | W2663508797 |
| Language | EN |
| References cited | 33 |
In this article, we estimate structural labor supply with piecewise-linear budgets and nonseparable endogenous unobserved heterogeneity. We propose a two-stage method to address the endogeneity issue that comes from the correlation between the covariates and unobserved heterogeneity. In the first stage, Evdokimov’s nonparametric de-convolution method serves to identify the conditional distribution of unobserved heterogeneity from the quasi-reduced model that uses panel data. In the second stage, the conditional distribution is plugged into the original structural model to estimate labor supply. We apply this methodology to estimate the labor supply of U.S. married men in 2004 and 2005. Our empirical work demonstrates that ignoring the correlation between the covariates and unobserved heterogeneity will bias the estimates of wage elasticities upward. The labor elasticity estimated from a fixed effects model is less than half of that obtained from a random effects model
Covariate · Econometrics · Economics · Endogeneity · Instrumental variable · Labour economics · Nonparametric statistics · Panel data · Statistics · Wage · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Labor market dynamics and wage inequality · Mathematics
Labor Supply
Nash-Bargained Household Decisions
Chapter 1 Labor supply of men
Rational Household Labor Supply
Optimal Bandwidth Selection for Nonparametric Conditional Distribution and Quantile Functions
Nonparametric Estimation of Conditional CDF and Quantile Functions With Mixed Categorical and Continuous Data
The Econometrics of Piecewise-Linear Budget Constraints
Collective Labor Supply and Household Production
The Effect of Taxation on Labor Supply
Five Decades of Educational Assortative Mating
The Econometrics of Kinked Budget Constraints
| Highly cited | No |
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