Assets, Savings, and Labor Supply,
RAND CORP SANTA MONICA CALIF
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This paper examines the role of assets in labor supply functions. In recent work, variables measuring assets have been used with increasing frequency to measure the response of hours worked to non-wage related income. The income slopes estimated were disappointing, in that the income variable often has the wrong sign positive implying that leisure was an inferior good, or they were so small that compensated own-wage slopes in the labor supply equation remained negative. In addition, the estimated income response exhibited considerable instability from study to study.
- Personnel Management and Labor Relations