This study proposes and implements a method of labour supply estimation which is appropriate when the sample contains unemployed and underemployed workers. The estimation method consists of excluding unemployed and underemployed workers from the sample and then using (to avoid selection bias) an extension of Heckman's approach to the case where two correlated selection rules generate the sample. Hausman's specification test is then used to determine whether ignoring constrained workers has led to biases in traditional labour supply estimates, and the empirical results suggest that previous estimates of several important parameters are biased. Since the biases go in the direction that would be predicted by the hypothesis that the unemployed and underemployed are constrained, the results support this hypothesis.

Journal Article Transitivity Get access Peter C. Fishburn Peter C. Fishburn Pennsylvania State University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 46, Issue 1, January 1979, Pages 163–173, https://doi.org/10.2307/2297179 Published: 01 January 1979 Article history Received: 01 February 1977 Accepted: 01 April 1978 Published: 01 January 1979

Journal Article Growth Accounting with Intermediate Inputs Get access Charles R. Hulten Charles R. Hulten Urban Institute, Washington D.C. Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 3, October 1978, Pages 511–518, https://doi.org/10.2307/2297252 Published: 01 October 1978 Article history Received: 01 May 1976 Accepted: 01 August 1977 Published: 01 October 1978

Journal Article The Optimal Exploitation of an Unknown Reserve Get access Glenn C. Loury Glenn C. Loury Northwestern University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 3, October 1978, Pages 621–636, https://doi.org/10.2307/2297264 Published: 01 October 1978 Article history Received: 01 November 1976 Accepted: 01 October 1977 Published: 01 October 1978

Journal Article On the Dynamic Behaviour of the Consumer and the Optimal Provision of Social Security Get access Sheng Cheng Hu Sheng Cheng Hu Purdue University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 3, October 1978, Pages 437–445, https://doi.org/10.2307/2297246 Published: 01 October 1978 Article history Received: 01 October 1976 Accepted: 01 June 1977 Published: 01 October 1978

Journal Article A Theory of Securities Markets Under Uncertainty Get access Bruce C. Dieffenbach Bruce C. Dieffenbach University of Pennsylvania Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 43, Issue 2, June 1976, Pages 317–327, https://doi.org/10.2307/2297327 Published: 01 June 1976

Journal Article The Core when Strategies are Restricted by Law Get access Theodore C. Bergstrom Theodore C. Bergstrom Washington University, St Louis Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 2, April 1975, Pages 249–257, https://doi.org/10.2307/2296532 Published: 01 April 1975

Journal Article An Asymptotic Theory of Growth Under Uncertainty Get access Robert C. Merton Robert C. Merton Massachusetts Institute of Technology Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 3, July 1975, Pages 375–393, https://doi.org/10.2307/2296851 Published: 01 July 1975

Journal Article A Probabilistic Model of Social Choice: Comment Get access Peter C. Fishburn Peter C. Fishburn The Pennsylvania State University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 2, April 1975, Pages 297–301, https://doi.org/10.2307/2296538 Published: 01 April 1975

Journal Article Axioms for Lexicographic Preferences Get access Peter C. Fishburn Peter C. Fishburn Pennsylvania State University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 3, July 1975, Pages 415–419, https://doi.org/10.2307/2296854 Published: 01 July 1975