A Labour Supply Model for Married Women in France, Taxation, Hours Constraints and Job Seekers

The paper presents an approach to modelling the labour supply of married women in France using a subsamply of the INSEE survey "Budgest des Familles 1978-1979". A major difficulty with the estimation of labour supply reactions for France is the lack of continuity in observed hours worked. Using a quasi-homothetic specification for preferences allowing for demographics, we estimate different versions of the same model, treating the information on hours as grouped data. The preferred version treats the job seekers as wanting to supply an indeterminate positive amount of hours of work.