Modelling and Empirical Evaluation of Labour Supply Behaviour

This study deals with modelling of neoclassical labour supply models for one-adult and two-adult households. A standard labour supply model is presented and estimated on Dutch data from 1985. A modification of the standard model is formulated, taking explicit account of nonconvexities in the budget set, related to the Dutch social security and welfare system. Habit formation and interdependent preferences are analyzed and a structural model of job choice, labour supply and wages is developed by incorporating nonpecuniary job characteristics into a utility maximization model. A full simultaneous model of labour supply in wage determination is estimated, based on the premise that individuals are faced with a limited availability of jobs. This microeconomics, econometrics and labour economics study is intended for the use of researchers.