scholarly journals Estimating Labor Supply Responses and Welfare Participation: Using a Natural Experiment to Validate a Structural Labor Supply Model

Author(s):  
Jorgen Hansen ◽  
Xingfei Liu
1999 ◽  
Vol 34 (3) ◽  
pp. 449 ◽  
Author(s):  
Joyce P. Jacobsen ◽  
James Wishart Pearce III ◽  
Joshua L. Rosenbloom

2014 ◽  
Vol 104 (5) ◽  
pp. 127-131 ◽  
Author(s):  
Charles Hokayem ◽  
James P. Ziliak

We use new PSID data on consumption and health, along with information on annual sick time, to estimate a structural labor supply model that incorporates a health capital stock with the traditional human capital learning-by-doing model. The estimates show strong evidence of learning by doing as well as strong persistence in health. However, the estimates reveal that time and money seem to have little effect on health consistent with 'flat of the curve' medicine. We find strong evidence that consumption and leisure are direct substitutes in preferences, and consumption and leisure are each utility complements with good health.


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