Discrete choice models of family labour supply

Choice Theory;Labour Supply

Comment on 'microeconometric demand systems with binding non-negativity constraints: The dual approach'

Economics;Microeconomics

Family Labor Supply and Proposed Tax Reforms in the Netherlands

This paper presents a discrete choice static neo-classical labor supply model for married or cohabiting couples in the Netherlands. The model simultaneously explains the participation decision and the desired number of hours worked. Due to its discrete nature, institutional details of the tax system can be fully incorporated. The model is estimated using Dutch cross-section data. The results are used to simulate the first order labor supply effects of proposed reforms of the Dutch income tax system. In particular, it is shown that some of the proposed reforms would have a negative effect on the number of married females who prefer a small part-time job. This pitfall is avoided in the final proposal which has gone to parliament.

Health and Wealth of Elderly Couples: Causality Tests Using Dynamic Panel Data Models

A positive relationship between socio-economic status (SES) and health, the so-called \health-wealth gradient", is repeatedly found in most industrialized countries with similar levels of health care technology and economic welfare. This study analyzes causality from health to wealth (health causation) and from wealth to health (wealth or social causation) for elderly couples in the US. Using six biennial waves of couples aged 51-61 in 1992 from the Health and Retirement Study, we compare the recently developed strategy using Granger causality tests of Adams et al.(2003, Journal of Econometrics) with tests for causality in dynamic panel data models incorporating unobserved heterogeneity. While Adams et al. tests reject the hypothesis of no causality from wealth to husband's or wife's health, the tests in the dynamic panel data model do not provide evidence of wealth-health causality.On the other hand, both methodologies lead to strong evidence of causal e®ects from both spouses' health on household wealth.health;wealth;panel data;inequality;ageing