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Earnings, Unemployment, and the Allocation of Time Over Time
Burdett, K., Kiefer, NM., Mortensen, DT., & Neumann, GR. (1984). Earnings, Unemployment, and the Allocation of Time Over Time. Review of Economic Studies, 51(4), 559-578.
A stochastic dynamic model of labour supply is specified and analysed empirically. The theoretical model provides a sound structural economic basis for a class of empirical models which have been shown useful. The implications of the estimated model are explored and diagnostic checks are suggested and implemented
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