Labor Supply in the Presence of Taxes: An Alternative Specification
- 1 February 1985
- journal article
- Published by JSTOR in The Review of Economics and Statistics
- Vol. 67 (1) , 27
- https://doi.org/10.2307/1928431
Abstract
This paper estimates a model of married women's labor supply in the presence of progressive taxes. The specification is based on a translog indirect utility function with normally distributed random preference parameters. The application of Roy's Identity then leads to a distribution of labor supply that involves ratios of normals.Keywords
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