| Abstract: | The purpose of this study is to estimate a model of male labour supply, when agents may be subject to quantity constraints. As the data contain direct information about hours constraints, this information is used in the estimation. We also quantify the importance of such rationing for the response in the hours of work to changes in wages, income and the tax system. As it turns out, quantity constraints appear only to slightly reduce the sensitivity of the average hours of work to changes in the economic environment. |
