infonet-economy

ZEW Discussion Paper No.95-12, Mannheim#### not available in German The labour supply of married women in Poland is studied using the Polish Labour Force Survey on three econometric models, viz. Tobit, Three Regime Tobit and Heckit. It is shown that the choice of model has an influence on conclusions drawn. In particular, the Tobit model - which has been widely applied in empirical labour supply analysis - turns out to be a strikingly bad predictor. Further, there is disagreement between the models regarding the wage elasticity of hours supplied. The preferred model for predicting hours of work is the Heckit model. This shows that an increase in the wage rate will induce employees to reduce their number of hours worked. Download Volltext: (pdf, 208 kb)