Seminar “Macroeconnomics and Labor Markets” on 14 January 2020

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We are pleased to invite you to the seminar series on “Macroeconomics and Labor Markets“ organized by the University of Erlangen-Nuremberg, Chair of Macroeconomics, and the Research Departments for Macroeconomic Labour Market Research of the Institute for Employment Research (IAB). Researchers of both institutions as well as national and international guests are presenting their current work at the intersection of labor and macro economics.

The next seminar will be held on Tuesday, January 14th 2020:


Christian Bredemeier  (Universität zu Köln)

“Estimating Labor-Supply Elasticities when Commitment between Spouses is Limited”


Place:  IAB, Regensburger Straße 100, Room E10

Time:   12:00 – 1:30 pm



The Frisch elasticity of labor supply can be estimated in a regression of hours worked on the hourly wage rate when controlling for consumption. Theory suggests to control for consumption of the individual worker but most household panel surveys contain consumption information only at the household level (if at all). We show that proxying individual consumption by household consumption causes substantial biases in estimated Frisch elasticities when commitment between household members is limited. We develop two improved estimation approaches that reduce or fully eliminate this bias. Applying these approaches to household panel data from the U.S., we find Frisch elasticities of about 0.7.