Working Paper: CEPR ID: DP3121
Authors: Rob Euwals
Abstract: This Paper tests the predictive value of subjective labour supply data for adjustments in working hours over time. The idea is that if subjective labour supply data help to predict next year?s working hours, such data must contain at least some information on individual labour supply preferences. This informational content can be crucial to identify models of labour supply. Furthermore, it can be crucial to investigate the need for, or, alternatively, the support for laws and collective agreements on working hours flexibility. In this Paper I apply dynamic panel data models that allow for measurement error. I find evidence for the predictive power of subjective labour supply data concerning desired working hours in the German Socio-Economic Panel 1988-96.
Keywords: Dynamic Panel Data Models; Labour Supply; Measurement Error; Subjective Data
JEL Codes: C23; J22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Measurement error (C20) | Interpretation of results (C52) |
| Subjective labour supply data (desired working hours) (J22) | Actual working hours (J22) |
| Desired working hours (J29) | Adjustments in actual working hours over time (J22) |
| Desired working hours (J29) | Paid hours (for women) (J22) |