%0 Report
        %A Battisti, Michele
%A Michaels, Ryan
%A Park, Choonsung
        %T Labor Supply within the Firm
        %D 2023
        %8 2023 Aug
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 16414
        %U https://www.iza.org/publications/dp16414
        %X 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.
        %K Frisch elasticity
%K production complementarities
%K labour supply