Unidimensionality, asymmetry and (S,s) rules in labour demand

$53.29 plus tax (Refund Policy)

Buy Article:

Abstract:

We analyse the conditions under which an (S,s) rule may be implemented in the case of labour demand. The (S,s) rule implies a specific ordering of choices: downward adjustment, nonadjustment and upward adjustment with the decision of inaction lying crucially in the middle. This requires an exact negative relation between the choice-specific error terms. The particular ordering of choices implied may be estimated by an ordered probit. We test the (S,s) rule nesting the ordered probit within a multinomial model with correlated error terms. The restriction to a univariate error distribution is rejected by the data.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840600690207

Affiliations: Department of Economics, University of Brescia, Italy

Publication date: August 1, 2007

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more