page 7 Economics 3 - Labor Supply Functions Labor Supply Regressions (a) Results of Multiple Regression of Average Weekly Hours on Hourly Earnings and Other Variables, 1950 (from Fleisher, p. 62). H- c - .085 E + . 193 M + 1.041 s + .066 A - .056 B - .023 F where c = constant of regression H E sean hours worked by male vage-and-salary workers in census week 1950 (hours) E I hourly wage and salary income (earnings) M 1 fraction of male workers with wife present (marital status) S : schooling in years age E proportion black ratio of female workers (percent female) (b) Labor Force Participation (Table 3-7, p. 80 in Fleisher) for 1950 population over 65 years of age No c+ . 64 E - 2.33 I (males) N - c + 1.05 E - 1.09 1 (females) where N E percent in labor force (labor force participation rate) E = earnings E other income (non wage income) for females 16-65 (taken from Mincer Aspects of Labor Economies, p. 72) Noc+ 1.33 E - 62 1 + .12 S - .41 0 - .24 X where U & unemployment rate K I number of kids QUESTIONS : 1. Do more educated women have a higher or lover labor force participation? 2. What is the effect of children on women's labor force participation? Do married men work greater amounts then non- married men? 3. Is the male labor supply curve for hours "backward bending"