Labor Supply Elasticities: Can Micro Be Misleading for Macro?∗

  • Riccardo Fiorito, Giulio Zanella
  • Published 2009

Abstract

In this paper we compare "micro" and "macro" labor supply elasticities in a MaCurdy equation derived from a life-cycle model with home production. Using PSID data, we estimate the micro elasticity using standard panel techniques and the macro elasticity from the time series generated by aggregating employed individuals every year. We find an individual… (More)

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