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The Consensus Estimate of the Elasticity of Labor Supply Among

Question 8

Multiple Choice

The consensus estimate of the elasticity of labor supply among females is −0.1. The interpretation of this estimate is what?


A) On average, women will increase hours of work by 10% when their wage increases by 1%.
B) On average, women will increase hours of work by 1% when their wage increases by 10%.
C) On average, women will reduce hours of work by 5% when their wage increases by 10%.
D) On average, women will reduce hours of work by 10% when their wage increases by 1%.
E) On average, women will reduce hours of work by 1% when their wage increases by 10%.

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