Tag
labor_supply_elasticity
3 findings
Labour & employmentParticipation vs. Effort Elasticity (Extensive vs. Intensive Margin)Arc elasticity of labor participation (extensive margin) with respect to the piece rate is 0.58, whereas the elasticity of daily output quantity (intensive margin) with respect to the piece rate is only 0.06 (controlling for reservation rates).RCTLabour & employmentLow Intertemporal and Hicksian Labor Supply ElasticitiesThe calibrated model yields an uncompensated (Marshallian) labor supply elasticity of 0.010, a compensated (Hicksian) elasticity of 0.096, and an intertemporal (Frisch) elasticity of 0.150; lifetime marginal propensity to earn ranges from -0.169 at age 20 to -0.036 at age 60.RCTLabour & employmentNon-Linear Compensated Labor Supply ElasticityCompensated labor supply elasticity is highly elastic below 30 weekly work hours (exceeding 1.0), but becomes highly inelastic at 40 hours per week and above (dropping to 0.5–0.6).RCT