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Labor Supply With Social Interactions: Econometric Estimates And Their Tax Policy Implications, Andrew Grodner, Thomas J. Kniesner
Labor Supply With Social Interactions: Econometric Estimates And Their Tax Policy Implications, Andrew Grodner, Thomas J. Kniesner
Center for Policy Research
Our research fleshes out econometric details of examining possible social interactions in labor supply. We look for a response of a person's hours worked to hours worked in the labor market reference group, which includes those with similar age, family structure, and location. We identify endogenous spillovers by instrumenting average hours worked in the reference group with hours worked in neighboring reference groups. Estimates of the canonical labor supply model indicate positive economically important spillovers for adult men. The estimated total wage elasticity of labor supply is 0.22, where 0.08 is the exogenous wage change effect and 0.14 is the …
County Characteristics And Poverty Spell Length, Andrew Grodner, John A. Bishop, Thomas J. Kniesner
County Characteristics And Poverty Spell Length, Andrew Grodner, John A. Bishop, Thomas J. Kniesner
Center for Policy Research
*In this paper we ask, how do individual and community factors influence the average length of poverty spells? We measure local economic conditions by the county unemployment rate and neighborhood spillover effects by the racial makeup and poverty rate of the county. We find that moving an individual from one standard deviation below the mean poverty rate to one standard deviation above the mean poverty rate (from the inner city to the suburbs) lowers the average poverty spell by 20 to 25 percent. This effect is equal in magnitude to the effect of changing the household head from female to …