TY  - RPRT
        AU  - Grodner, Andrew
AU  - Kniesner, Thomas J.
        TI  - Labor Supply with Social Interactions: Econometric Estimates and Their Tax Policy Implications
        PY  - 2007/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3034
        UR  - https://www.iza.org/publications/dp3034
        AB  - Our econometric research allows for a possible response of a person's hours worked to hours typically worked by members of a multidimensional labor market reference group that considers demographics and geographic location. Instrumental variables estimates of the canonical labor supply model expanded to permit social interactions pass a battery of specification checks and indicate positive and economically important spillovers for adult men. Ignoring or incorrectly considering social interactions in male labor supply can mis-estimate the response to tax reform by as much as 60 percent.
        KW  - labor supply
KW  - instrumental variables
KW  - reference group
KW  - social interactions
KW  - social multiplier
KW  - PSID
        ER  -