IMPLICIT CONTRACTS, LIFE CYCLE LABOR SUPPLY, AND INTERTEMPORAL SUBSTITUTION

• 成果类型: Article
• 署名作者: Ham, John C.; Reilly, Kevin T.
• 署名单位: University System of Maryland; University of Maryland College Park; National University of Singapore; University of Leeds
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12031
• 发表日期: 2013
• 页码: 1133-1158
• 关键词: business-cycle; MODEL; unemployment; consumption; EMPLOYMENT; wages; time; consistent; earnings

摘要

The implicit contract model is a serious alternative to the spot market interpretation of the labor market. However, its usefulness has been limited because the wage is unobserved, and hence it has not been possible to estimate an intertemporal (Frisch) supply elasticity for the model using microdata. In this article, we show that one can estimate this elasticity from microdata within the context of the implicit contract model under relatively weak assumptions based on consumer theory. We implement our approach on two micro data sets and, for both, obtain a reasonably precise elasticity estimate of approximately 1.0.