Volume 37, Number 2 (Spring) 2002
Pencavel, John. 2002. "A Cohort Analysis of the Association Between Work and Wages Among Men." Journal of Human Resources 37(2):251-274.
The results of some recent ingenious labor supply research may appear incompatible with the notion that uncompensated wage elasticities for men are small, perhaps negative. This paper argues there is no incompatibility. The methodology in this recent research results in computing wage responses that come closer to measuring intertemporal wage elasticities than to uncompensated wage elasticities. To demonstrate this, I use pseudopanel data constructed from the March Current Population Surveys from /967 to /998 to measure both intertemporal wage elasticities and uncompensated wage elasticities. The latter appear sensitive to the particular specification of the hours equation.
John Pencavel is a professor of economics at Stanford University, Stanford. California. 94305-6072. The research reported in this paper has been supported by NSF grant SBR 94-04482. Very helpful comments on previous drafts of this paper were received from Luigi Pistaferri and two anonymous referees. The author thanks Joanna Campbell for her conscientious research assistance. The data used in this article can be obtained beginning January 200] through December 2003 from the author.
© 2003 by the Board of Regents of the University of Wisconsin System
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