This paper extends a standard intertemporal labor supply model to account for progressive taxation as well as the joint determination of hourly wages and hours worked. We show that these two factors can have implications for both estimating labor supply elasticities as well as for using these elasticities in tax analysis. Failure to account for…

Using store-level and aggregated Consumer Price Index data, we show that restaurant prices rise in response to minimum wage increases under several sources of identifying variation. We introduce a general model of employment determination that implies minimum wage hikes cause prices to rise in competitive labor markets but potentially fall in…

Using longitudinal survey data collected in collaboration with a treatment program, this paper estimates the economic impacts of antiretroviral treatment. The responses in two outcomes are studied: (1) labor supply of treated adult AIDS patients; and (2) labor supply of individuals in patients' households. Within six months after treatment…

In October 1999, the British government enacted the Working Families' Tax Credit, which aimed at encouraging work among low-income families with children. This paper uses panel data collected between 1991 and 2001 to evaluate the effect of this reform on single mothers. We find that the reform led to a substantial increase in their employment rate…

This paper demonstrates the extent to which married women's labor supply elasticities have changed over the past quarter century. Estimates from March Current Population Survey data suggest that these elasticities have decreased substantially, by 60 percent for the hours wage elasticity (from 0.36 to 0.14), 70 percent for the hours income…

Before 1997, education was a way for young French men to avoid military service in the army. After the abolition of compulsory conscription in 1997, this incentive to stay on in education disappeared. We show that the decrease in the benefit of pursuing education for men was followed by a fall in their educational achievement relative to women and…

Using matched employer-employee data from ten African countries, we examine the relationship between wages, worker supervision, and labor productivity in manufacturing. Wages increase with firm size for both production workers and supervisors. We develop a two-tier model of supervision that can account for this stylized fact and we fit the…