Title: Household vs. personal accounts of the U.S. Labor Market, 1965-2000
First published: 2004
Description: "The empirical labor supply literature includes some simple aggregate studies, and some individual-level studies explicitly accounting for heterogeneity and the discrete choice, but sometimes leaving open the ultimately aggregate questions that motivated the study.  As a middle ground, we construct household-based measures of labor supply by within-household aggregating answers to the usual weeks and hours worked questionnaire items.  Household (H) measures are substantially different than the more familiar person (P) measures: H employment rates are relatively higher, with little trend, and relatively little fluctuations.  From the H point of view, essentially all aggregate hours trends and fluctuations can be attributed to changes on the intensive' margin and not the extensive' margin a characterization that is opposite of that derived from P measures.  The cross-H distribution of hours is richer, and less spiked, than the cross-P distribution.  Labor supply is more wage elastic from an H point of view"--National Bureau of Economic Research web site.
LC classification: HB1