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Flexible Labor Supply Models
by Olivier Bargain
(July 2009)
published in: Economics Letters, 2009, 105 (1), 103-105

Abstract:
Discrete-choice models of labor supply have become very popular for ex ante evaluations of policy reforms as they easily account for non-convex budget sets. We test the constraints imposed in practice on these models and suggest a fully flexible model that significantly improves fit.
Text: See Discussion Paper No. 4281