Labor Supply Elasticities: Overcoming Nonclassical Measurement Error Using More Accurate Hours Data

A-Tier
Journal: Journal of Human Resources
Year: 2019
Volume: 54
Issue: 1

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We measure the impact of measurement error in labor supply elasticities estimated over recalled usual work hours, as is ubiquitous in the literature. We employ data on hours of work in diaries collected by the American Time Use Survey, 2003–2015, along with the same respondents’ recalled usual work hours. Estimates using the latter yield elasticities that are positively biased. We argue that this bias arises from the salient effects of differences in wage rates on recalled hours.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:54:y:2019:i:1:p:255-265
Journal Field
Labor
Author Count
2
Added to Database
2026-01-24