Hello, i am using the discrete choice model to estimate the labour supply of individuals. In order to estimate the hours and participation elasticities in that model i increase the gross wages 1%.
For the hours elasticity: i calculate the difference between hours before and after the change in wages
For the participation elasticity: is the difference in the income before and after the change in the wages?
Is anyone familiar?
Thank you very much.
For the hours elasticity: i calculate the difference between hours before and after the change in wages
For the participation elasticity: is the difference in the income before and after the change in the wages?
Is anyone familiar?
Thank you very much.