TY  - RPRT
        AU  - Battisti, Michele
AU  - Michaels, Ryan
AU  - Park, Choonsung
        TI  - Labor Supply within the Firm
        PY  - 2023/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16414
        UR  - https://www.iza.org/index.php/publications/dp16414
        AB  - There is substantial variation in working time even within employer-employee matches, and yet estimates of the Frisch elasticity of labor supply can be near zero. This paper proposes a tractable theory of earnings and working time to interpret these observations. Production complementarities attenuate the response of working time to idiosyncratic, or worker-specific, shocks, but…firm-wide shocks are mediated by preference parameters. The model can be identified using…firm-worker matched data, revealing a Frisch elasticity of around 0.5. A quasi-experimental approach that exploits only idiosyncratic variation would find an elasticity less than half this.
        KW  - Frisch elasticity
KW  - production complementarities
KW  - labour supply
        ER  -