How Credible Are Shrinking Wage Elasticities of Married Women Labour Supply?

Duo Qin, Sophie Van Huellen, Qing Chao Wang

Research output: Contribution to journalArticlepeer-review


This paper delves into the well-known phenomenon of shrinking wage elasticities for married women in the US over recent decades. The results of a novel model experimental approach via sample data ordering unveil considerable heterogeneity across different wage groups. Yet, surprisingly constant wage elasticity estimates are maintained within certain wage groups over time. In addition to those constant wage elasticity estimates, we find that the composition of working women into different wage groups has changed considerably, resulting in shrinking wage elasticity estimates at the aggregate level. These findings would be impossible to obtain had we not dismantled and discarded the instrumental variable estimation route.
Original languageEnglish
Issue number1
Publication statusPublished - 25 Dec 2015

Research Beacons, Institutes and Platforms

  • Global Development Institute


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