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"Econometric models with nonlinear budgets sets frequently arise in the study of impact of taxation on labor supply. Blomquist and Newey (2002) have suggested a nonparametric method to estimate the uncompensated wage and income effects when the budget set is nonlinear. This paper extends their nonparametric estimation method to censored dependent variables. The modified method is applied to estimate female wage and income elasticities using the 1987 PSID. I find evidence of bias if the nonlinearity in the budget set is ignored. The median compensated elasticity is estimated at 1.19 (with a standard error of 0.19)"--Federal Reserve Bank of Dallas web site.
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Subjects
Econometric models, Effect of taxation on, Labor supply, Wages, WomenShowing 1 featured edition. View all 1 editions?
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Nonparametric estimation of the impact of taxes on female labor supply
2005, Federal Reserve Bank of Dallas
Electronic resource
in English
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Book Details
Edition Notes
Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 4/2/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.
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