Female labour supply in Finland : Econometric applications of discrete choise models to married women's labour supply decisions
Lahdenperä, Harri (01.01.1991)
Numero
76Julkaisija
Bank of Finland
1991
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201808101979Tiivistelmä
The aim of this study is to analyze the female labour supply. In Finland very little work has thus far been done on the cross-section analysis of the labour supply.
Even though our study focuses on the estimation of labour supply functions we also estimate a wage' equation which gives us information about the effects on hourly wage rates of education, age, work experience and occupational status. Cross-section analysis of hourly wage determination has thus far been almost non-existent in Finland. Lilja & Vartia (1980) studied the effects of education on household income using the 1971 Household Survey data. The labour supply studies mentioned above also contain estimated wage equations which, however, are not as detailed as in our study.
Our study is largely based on a stochastic choice approach, and we utilize various econometric techniques. Special attention is devoted to the estimation of wage and income elasticities, as well as to the effects of fixed working costs and progressive taxes on the female labour supply in Finland. We use microdata from 1980 and concentrate on married women because in the last ten years the most important changes in the labour supply have taken place in this group and because other empirical studies of labour supply have pointed to this group as being the most sensitive to economic incentives.
Even though our study focuses on the estimation of labour supply functions we also estimate a wage' equation which gives us information about the effects on hourly wage rates of education, age, work experience and occupational status. Cross-section analysis of hourly wage determination has thus far been almost non-existent in Finland. Lilja & Vartia (1980) studied the effects of education on household income using the 1971 Household Survey data. The labour supply studies mentioned above also contain estimated wage equations which, however, are not as detailed as in our study.
Our study is largely based on a stochastic choice approach, and we utilize various econometric techniques. Special attention is devoted to the estimation of wage and income elasticities, as well as to the effects of fixed working costs and progressive taxes on the female labour supply in Finland. We use microdata from 1980 and concentrate on married women because in the last ten years the most important changes in the labour supply have taken place in this group and because other empirical studies of labour supply have pointed to this group as being the most sensitive to economic incentives.