CEU Electronic Theses and Dissertations, 2008
| Author | Shameti, Gisela |
|---|---|
| Title | Estimating Labor Supply In Albania |
| Summary | Estimating labor supply in Albania is interesting not only from an econometrical point of view but it is mainly important for policy making in the field of labor market. Using the data from the Living Standard Measurement Surveys in Albania covering the period from 2002 to 2005, this paper studies the labor force participation changes in the Albanian labor market and, focusing on the 2003-2004 period, estimates labor supply, correcting for selectivity bias via the Heckman procedure. Drawing on these samples, it is evident that labor participation rates in Albania declined from 2002 to 2005 both in terms of age cohorts and in terms of gender. Female participation shows a continuous decline, as does the participation of older generations. The OLS results over 2003 and 2004 samples indicate small positive wage elasticity of 0.08 and 0.06, respectively. The results are nevertheless subject to many procedural and methodological limitations. When correcting for exogeneity and selectivity bias through Heckman procedure on these datasets wage elasticities became 0.23 and 0.12 confirming labor supply theory and getting closer to worldwide trends. However, the other variables in the equation proved insignificant suggesting various problems with data, like measurement error, exogeneity or multicollinearity.The paper suggests ways for further work on the topic. |
| Supervisor | Grajzl, Peter |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2008/shameti_gisela.pdf |
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