Kt. Reilly, ANNUAL HOURS AND WEEKS IN A LIFE-CYCLE LABOR SUPPLY MODEL - CANADIAN EVIDENCE ON MALE-BEHAVIOR, Journal of labor economics, 12(3), 1994, pp. 460-477
Estimates of the intertemporal labor supply behavior of males in Canad
a using micro data are reported. Individuals make the intertemporal la
bor supply decision on the basis of annual hours and weeks. Precision
of the parameter estimates is improved by using tenure variable as ins
truments for the wage. Further, the age and tenure variables are allow
ed to have taste parameters in the structural equations. The evidence
suggests that this is required only for the two age variables. Elastic
ity evidence suggests that evolutionary changes in the wage cause chan
ges in the number of weeks with the elasticity being 0.6 and statistic
ally significant.