Household labour supply with rationing in Spain

This paper provides new empirical evidence on household labour supply with rationing. To that end, we use the latest Spanish data in order to estimate three flexible functional forms, namely the NLES, the quadratic and the Ha usman-Ruud forms and calculate the income and wage elasticities. We find th at the number- of dependants has a negative effect on the labour supply of the female. Moreover, the North and the East Spanish regions have a clearly positive effect on the labour supply of the female, whilst the North has t he same effect on that of the male. The elasticities of three functional fo rms are very similar. Male labour supply is slightly decreasing with the wa ge, whilst for the female it is increasing. Leisure is a normal good for bo th spouses, as expected, whilst the labour hours are net substitutes.