What is the difference between compensated labor supply elasticity and uncompensated labor supply elasticity?

Question

(the labor supply is varying with respect to the tax rate)

Answer 1

If the tax rate is high, fewer people want to work for money, because the government takes most of it. So, the elasticity for compensated and uncompensated labor supply would be in inverse proportions. As the tax rate goes up, more people would quit their compensated positions and be available to work without compensation, since they would then pay no taxes.

Answer 2

try this:

www.minneapolisfed.org/research/prescott/papers/LaborSupply.pdf