Skip to main content

Table 1 SML estimates of labor supply models for married couples

From: In-work benefits for married couples: an ex-ante evaluation of EITC and WTC policies in Italy

Model component

Variable

Model 1

Model 2

Preferences

(DHI/1000)

0.9413**

0.3513**

 

(DHI/1000)2

-0.0045**

-0.0012**

 

(Husband’s leisure)2

-0.0019**

-0.0016**

 

(Wife’s leisure) 2

-0.0025**

-0.0026**

 

(DHI/1000) × (Husband’s leisure)

-0.0009

0.0007

 

(DHI/1000) × (Wife’s leisure)

-0.0028**

-0.0008

 

(Husband’s leisure) × (Wife’s leisure)

0.0007

0.0009**

 

(Husband’s leisure)

0.5268**

0.4080**

 

 × (Age/10)

-0.0560

-0.0555*

 

 × (Age/10)2

0.0075*

0.0073**

 

 × No. children

0.0030

0.0029

 

 × Children aged (0–3)

-0.0111

-0.0124

 

 Standard deviation ζ m

0.0027

0.0020

 

(Wife’s leisure)

0.7348**

0.6520**

 

 × (Age/10)

-0.0504

-0.0391

 

 × (Age/10)2

0.0078*

0.0060*

 

 × No. children

0.0105**

0.0079**

 

 × Children aged (0–3)

0.0094

0.0092

 

 Standard deviation ζ f

0.0048

0.0004

Hours of work densities

Husband

Part-time peak

-3.1684**

 
  

Full-time peak-35h

-1.1088**

 
  

Full-time peak-40h

0.4886**

 
 

Wife

Part-time peak

-1.2054

 
  

Full-time peak-35h

-0.1112

 
  

Full-time peak-40h

1.1022*

 
 

Husband - public

Part-time peak

 

-2.2099**

  

Full-time peak-35h

 

0.4483

  

Full-time peak-40h

 

0.7350**

 

Husband - private

Part-time peak

 

-3.4112**

  

Full-time peak-35h

 

-1.8509**

  

Full-time peak-40h

 

0.4425**

 

Wife - public

Part-time peak

 

-0.3702

  

Full-time peak-35h

 

1.0504

  

Full-time peak-40h

 

1.3263*

 

Wife - private

Part-time peak

 

-1.6869*

  

Full-time peak-35h

 

-0.9976

  

Full-time peak-40h

 

0.9908 *

Job availability measures

Husband

Constant

2.7391**

 
  

Secondary educ.

0.8766**

 
  

Tertiary educ.

1.2449

 
  

Reg. unemployment

-0.1241**

 
 

Wife

Constant

2.1139**

 
  

Secondary educ.

0.9326**

 
  

Tertiary educ.

1.8226**

 
  

Reg. unemployment

-0.2159**

 
 

Husband - public

Constant

 

-2.4705*

  

Secondary educ.

 

1.8531**

  

Tertiary educ.

 

3.2211**

  

Reg. unemployment

 

0.0497

 

Husband - private

Constant

 

3.1858**

  

Secondary educ.

 

0.2602

  

Tertiary educ.

 

-0.7316

  

Reg. unemployment

 

-0.1553**

 

Wife - public

Constant

 

-1.8995**

  

Secondary educ.

 

1.6213**

  

Tertiary educ.

 

3.2079**

  

Reg. unemployment

 

-0.1088**

 

Wife - private

Constant

 

2.1173**

  

Secondary educ.

 

0.4084*

  

Tertiary educ.

 

-0.1426

  

Reg. unemployment

 

-0.1625**

  1. Notes: Model 1 ignores sector-specific attributes of the various jobs, while Model 2 distinguishes between jobs in the public and the private sectors. SML estimates are based on 50 draws from the distribution of the random effects in each model. DHI denotes disposable household income. ζ m , and ζ f are random effects for heterogeneity in preferences of husbands and wives, respectively. Asterisks denote *a p-value between 5% and 1% and **a p-value below 1%.
Back to article page