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This chapter is concerned with the identification and estimation of models of labor supply. The focus is on the key issues that arise from unobserved heterogeneity, nonparticipation and dynamics. We examine the simple “static” labor supply model with proportional taxes and highlight the...
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Through certainty equivalent consumption (CE) measures, we show that dispersion of current earnings, expenditures, and … consumption, as well as uncertainty and demographic composition. Rising inequality has offset about 1/4 of the welfare gains from … higher consumption, with most of the losses accruing after 2000. …
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