To work or not to work? Updated estimates of labour supply elasticities
Siebertova, Zuzana ; Senaj, Matus ; Svarda, Norbert ; Valachyova, Jana
Central European Labour Studies Institute, Bratislava
CELSI - Bratislava
2015
26 p.
labour force participation ; labour supply ; statistics ; labour market policy
CELSI Discussion Paper
32
Labour market
English
Bibliogr.
"This paper provides a revised microeconometric analysis of extensive margin labour supply elasticities in Slovakia. Compared to earlier analysis, we estimate the elasticities for males and females separately. We find that a one percent increase in net wage increases the probability of economic activity by 0.21 and 0.4 percentage points for males and females, respectively. Taking into account tax and transfer system details valid in Slovakia in 2009-2012, a one percent increase in transfers decreases the semi-elasticity of labour force participation by 0.03 percentage points for males and 0.05 percentage points for females. These results are broadly in line with the elasticities usually reported in the literature. Our results show that low-skilled, females and the elderly are the groups that are particularly responsive to changes in taxes and transfers. Labour market policies aimed to boost employment should concentrate on increasing marginal gains to work, especially for low-educated individuals and women."
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