Estimating Intertemporal Labour Supply Elasticities Using Structural Models.

In this paper, the author proposes empirical models where both the intertemporal substitution elasticity and the elasticities measuring the impact of different wage profiles are estimated taking into account the restrictions derived from utility maximization. She considers models assuming a Stone Geary utility function and also a constant elasticity of substitution across periods function. The data used are a sample of men from the Michigan Panel of Income Dynamics. Her estimates support the low intertemporal substitution elasticity found in previous studies. The estimates for the uncompensated elasticities are also small. Copyright 1989 by Royal Economic Society.