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Peter Haan (DIW Berlin) – “Biased Wage Expectations and Female Labor Supply”

September 19 @ 12:15 pm - 1:30 pm

Applied Micro Seminar : Every Tuesday
Time: 12:15 pm – 13:30 pm
Date: 19th of September
Room : 3001


Peter Haan (DIW Berlin) – Biased Wage Expectations and Female Labor Supply


Abstract :

Wage growth occurs almost exclusively in full-time work, whereas it is close to zero in part-time work. German women, when asked to predict their own potential wage outcomes, show severely biased expectations with strong over-optimism about the returns to part-time experience. We estimate a structural life-cycle model to quantify how beliefs influence labor supply, earnings and welfare over the life cycle. The bias increases part-time employment strongly, induces flatter long-run wage profiles, and substantially influences the employment effects of a widely discussed policy reform, the introduction of joint taxation. The most significant impact of the bias appears for college-educated women.




Benoît SCHMUTZ (Pôle d’économie du CREST)
Clément MALGOUYRES (Pôle d’économie du CREST)