Research & Analysis by Malcolm B. Coate

Disability Benefit Applications and the Economy
from Social Security Bulletin, Vol. 42, No. 10 (released October 1979)
by Mordechai E. Lando, Malcolm B. Coate, and Ruth Kraus

The Family Labor Supply Response to Disabling Conditions
ORES Working Paper No. 10 (released August 1979)
by L. Scott Muller, Jesse M. Levy, and Malcolm B. Coate

The role of time as an input into the utility maximization process has long been recognized in the labor/leisure decision. Expanded research has dealt with this input in a family context. Assuming a joint utility maximization model, the resulting labor supply functions can be determined for both spouses.

The model presented here is an extension of previous models by its incorporation of the effects of disabling conditions of the husband on the labor supply decisions of both spouses.

Because hours worked takes on a lower limit of zero, the standard simultaneous equation techniques would yield estimates lacking the ideal properties. Instead, the model is estimated using a simplification of a simultaneous TOBIT technique, which yields consistent estimates.