ABSTRACT

The K. W. Glaister, A. McGlone, R. J. Ruffell findings which allow for interactions between preference variables and budget constraint variables has also reduced the elasticity of substitution for men, which have actually become negative contrary to theoretical predictions. The negative elasticity of substitution for men may stem from the inclusion of ‘other income’ in the intercept. The E. Levin and D. T. Ulph results are the only results that cannot be presented in elasticity terms. They found a small effect of tax on men’s overtime amounting to perhaps an increase in hours worked of 1 per cent. Using the mean wage for people at kinks has little effect for men -except, perhaps, in increasing the absolute value of negative price elasticity. R. J. Ruffell finds a low price elasticity for women with the endogenous model but his non-endogenous model confirms the large positive elasticity found by most other researchers.