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This study considers the impact of taxes on work effort for a sample of employed women in Jamaica, employing the Hausman (1981) method. This approach accounts for the complete form of the budget constraint and uses maximum likelihood methods to estimate the labour supply function. The model used also accounts for measurement error as well as heterogeneity of preferences. It is usually the case that measurement error tends to spread observations evenly over the budget constraint while heterogeneous errors tend to account for the clustering of observations around the kink point of the convex budget constraint. The model employs both a nonlinear and a linear specification, the former, to account for the possibility of having individuals on a backward bending labour supply curve.