ERIC Number: ED123353
Record Type: RIE
Publication Date: 1975-Dec
Reference Count: 0
Implicit and Explicit Preference Structures in Models of Labor Supply.
The study of labor supply is directed to a theoretical methodology under which the choice of the general functional form of the income-leisure preference structure may be regarded as an empirical question. The author has reviewed the common functional forms employed in empirical labor supply models and has characterized the inherent preference structures in terms of patterns of expansion paths in the plane of leisure and market consumption. The preference maps for the more tractable models are seen to fall within a well-behaved set of alternative structures that range along a continuum from divergent to convergent patterns of expansion paths. A new class of preference structures, having parallel expansion paths, falls within this continuum. A proposed empirical model for the estimation of the form of the preference structure is adapted from an estimation form developed by Cohen, Rea, and Lerman (1970). This model permits the estimation of sample analogs of expansion paths at different wage rates. The pattern of the estimated path may then be tested against those implied by alternative analytical functions. (Author/EA)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Department of Health, Education, and Welfare, Washington, DC.
Authoring Institution: Wisconsin Univ., Madison. Inst. for Research on Poverty.