Labor Supply and Optimization Frictions: Evidence from the Danish student labor market
Research output: Working paper › Research
Standard
Labor Supply and Optimization Frictions : Evidence from the Danish student labor market. / Søgaard, Jakob Egholt.
Economic Policy Research Unit. Department of Economics, University of Copenhagen, 2014.Research output: Working paper › Research
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
TY - UNPB
T1 - Labor Supply and Optimization Frictions
T2 - Evidence from the Danish student labor market
AU - Søgaard, Jakob Egholt
N1 - JEL Classification: H21, H24, J22
PY - 2014/12
Y1 - 2014/12
N2 - In this paper I investigate the nature of optimization frictions by studying the labor market of Danish students. This particular labor market is an interesting case study as it features a range of special institutional settings that affect students’ incentive to earn income and comparing outcomes across these setting effectively allow you to distinguish between different types of frictions. I find that the considered labor market is significantly affected by optimizations frictions, which masks the bunching at kink points normally associated with a positive labor supply elasticity under standard theory. More concretely I find the dominate optimization friction to be individuals’ inattention about their earnings during the year, while real adjustment cost and gradual learning appears to be of less importance.
AB - In this paper I investigate the nature of optimization frictions by studying the labor market of Danish students. This particular labor market is an interesting case study as it features a range of special institutional settings that affect students’ incentive to earn income and comparing outcomes across these setting effectively allow you to distinguish between different types of frictions. I find that the considered labor market is significantly affected by optimizations frictions, which masks the bunching at kink points normally associated with a positive labor supply elasticity under standard theory. More concretely I find the dominate optimization friction to be individuals’ inattention about their earnings during the year, while real adjustment cost and gradual learning appears to be of less importance.
KW - Faculty of Social Sciences
KW - arbejdsudbud
KW - friktioner
M3 - Working paper
T3 - EPRU Working Paper Series
BT - Labor Supply and Optimization Frictions
PB - Economic Policy Research Unit. Department of Economics, University of Copenhagen
ER -
ID: 188359945