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Journal of the European Economic Association
Article . 2006 . Peer-reviewed
License: Wiley TDM
Data sources: Crossref
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Social Interactions in Labor Supply

Authors: Grodner, Andrew; Kniesner, Thomas J;

Social Interactions in Labor Supply

Abstract

Our research examines the effect of interdependence on estimation and interpretation of earnings/labor supply equations. We consider the cases of (1) a positive spillover from others' labor supplied and (2) a need for conformity with others' labor supplied. Qualitative and quantitative comparative statics results with a Stone-Geary utility function demonstrate how spillover effects increase labor supply uniformly. Alternatively, conformity effects move labor supplied toward the mean of the reference group so that, in the limit, labor supply becomes perfectly inelastic at the reference group average. When there are unmodeled exogenous social interactions, conventional wage elasticities are still relatively well estimated, although structural parameters may not be. Omitting endogenous social interactions may seriously misrepresent the labor supply effects of policy, however. (JEL: D11, J22, Z13)

Country
United States
Related Organizations
Keywords

Economics, Labor Economics, Labor Supply, jel: jel:J22, jel: jel:J21

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
19
Average
Top 10%
Average
Green
hybrid