NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Adjustment Costs, Firm Responses, and Micro vs. Macro Labor Supply Elasticities: Evidence from Danish Tax Records

Raj Chetty, John N. Friedman, Tore Olsen, Luigi Pistaferri

NBER Working Paper No. 15617
Issued in December 2009

---- Acknowledgements -----

We would like to thank David Card, Stephen Coate, Edward Glaeser, James Hines, Han Hong, Lawrence Katz, Henrik Kleven, Claus Kreiner, Patrick Kline, Erzo Luttmer, Robert Moffitt, John Pencavel, Emmanuel Saez, Esben Schultz, and numerous seminar participants for helpful suggestions and valuable discussion. We are extremely grateful to Mette Ejrnæs and Bertel Schjerning at the Centre for Applied Microeconometrics at the University of Copenhagen, Frederik Hansen at the Ministry of Finance, Peter Elmer Lauritsen at Statistics Denmark, as well as Anders Frederiksen, Paul Bingley, and Niels Chr. Westergård-Nielsen at Aarhus Business School for help with the data and institutional background. Gregory Bruich, Jane Choi, and Keli Liu provided outstanding research assistance. We are also extremely grateful to Chris Walker and the Harvard Research Computing group for technical assistance. Support for this research was provided by the Robert Wood Johnson Foundation and NSF Grant SES-0645396. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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