Estimating time demand elasticities under rationing

Working paper

A multivariate extension of the standard labour suppy model is presented. In the multivariate time allocation model leisure is disaggregated into a number of non market activities including sports, volunteer work and home production. Using data from the 2000 UK Time Use Survey, a linear expenditure system is estimated, allowing corner solutions in the time allocated to market work and non market activities. The effects of children, age, gender and education are largely as expected. The unusually high wage elasticities are attributed to a combination of the functional form of the linear expenditure and the treatment of the zero observations.

Authors: Prowse, V

• Publication status: Published
• Publisher: University of Oxford
• Series: Department of Economics Discussion Paper Series
• Publication date: 2004-10-01
• Paper number: 209
• Keywords: corner solutions; simulation inference; time use; labour supply