Please use this identifier to cite or link to this item: https://hdl.handle.net/10620/17892
Longitudinal Study: HILDA
Title: The accuracy of predicted wages of the non-employed and implications for policy simulations from structural labour supply models
Authors: Breunig, Robert 
Mercante, Joseph 
Publication Date: Feb-2010
Pages: 49-70
Keywords: Income
Unemployed
Abstract: We examine the accuracy of predicted wages for the nonemployed. We argue that unemployment, marginal attachment, and not in the labour force are three distinct states. Using panel data from Australia, we test the accuracy of predicted wages for these three groups of non-employed using sample selection models. Focusing on those individuals who subsequently enter employment, we find that predictions which incorporate the estimated sample selection correction perform poorly, particularly for the marginally attached and the not in the labour force. These results have important implications for policy simulations from structural labour supply models.
DOI: 10.1111/j.1475-4932.2009.00619.x
URL: https://crawford.anu.edu.au/pdf/staff/robert_breunig/Breunig_Mercante2010.pdf
https://onlinelibrary.wiley.com/doi/full/10.1111/j.1475-4932.2009.00619.x
Keywords: Income & Finance; Employment -- Unemployment
Research collection: Journal Articles
Appears in Collections:Journal Articles

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