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Option Or Obligation? The Determinants Of Labour Supply Preferences In Britain

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  • RenÈ B–heim

    (University of Munich,)

  • Mark P. Taylor

Abstract

We examine persistence in work hour constraints using subjective data from the British Household Panel Survey, and investigate the role of job and employer changes in alleviating these constraints. Evidence suggests that 40 per cent of employees prefer to work a different number of hours at their current wage, and the majority of these prefer to work fewer hours. Our estimates also indicate that, although these constraints persist over time, job and employer changes alleviate over-employment particularly among men. Work time preferences are determined by observed job and employer related characteristics, individual demographics, local labour demand and time-invariant unobserved individual-specific effects. Copyright 2003 Blackwell Publishing Ltd and The Victoria University of Manchester.

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Bibliographic Info

Article provided by University of Manchester in its journal The Manchester School.

Volume (Year): 71 (2003)
Issue (Month): 2 (03)
Pages: 113-131

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Handle: RePEc:bla:manchs:v:71:y:2003:i:2:p:113-131

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References

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  1. William T. Dickens & Shelly J. Lundberg, 1985. "Hours Restrictions and Labor Supply," NBER Working Papers 1638, National Bureau of Economic Research, Inc.
  2. Oswald, Andrew J, 1997. "Happiness and Economic Performance," Economic Journal, Royal Economic Society, vol. 107(445), pages 1815-31, November.
  3. Deardorff, Alan V & Stafford, Frank P, 1976. "Compensation of Cooperating Factors," Econometrica, Econometric Society, vol. 44(4), pages 671-84, July.
  4. Shulamit Kahn & Kevin Lang, 1988. "The Effects of Hours Constraints on Labor Supply Estimates," NBER Working Papers 2647, National Bureau of Economic Research, Inc.
  5. Van Soest, A., 1992. "Discrete Choice Models of Family Labour Supply," Papers 9214, Tilburg - Center for Economic Research.
  6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  7. Joseph G. Altonji & Christina H. Paxson, 1990. "Labor Supply, Hours Constraints and Job Mobility," NBER Working Papers 3474, National Bureau of Economic Research, Inc.
  8. Andrew E. Clark and Andrew J. Oswald, . "Satisfaction and Comparison Income," Economics Discussion Papers 419, University of Essex, Department of Economics.
  9. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
  10. Rosen, Sherwin, 1969. "On the Interindustry Wage and Hours Structure," Journal of Political Economy, University of Chicago Press, vol. 77(2), pages 249-73, March/Apr.
  11. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  12. Peter Kooreman & Arie Kapteyn, 1990. "On the Empirical Implementation of Some Game Theoretic Models of Household Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 584-598.
  13. Barzel, Yoram, 1973. "The Determination of Daily Hours and Wages," The Quarterly Journal of Economics, MIT Press, vol. 87(2), pages 220-38, May.
  14. Wolf, Elke, 1998. "Do hours restrictions matter? A discrete family labor supply model with endogenous wages and hours restrictions," ZEW Discussion Papers 98-44, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  15. Shulamit B. Kahn & Kevin Lang, 1995. "The Causes of Hours Constraints: Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 914-28, November.
  16. Stewart, M.B. & Swaffield, J.K., 1996. "Constraints on the Desired Hours of Work of British Men," The Warwick Economics Research Paper Series (TWERPS) 468, University of Warwick, Department of Economics.
  17. Keith A. Bender & Peter J. Sloane, 1998. "Job satisfaction, trade unions, and exit-voice revisited," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 222-240, January.
  18. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
  19. Euwals, R.W. & Melenberg, B. & Soest, A.H.O. van, 1997. "Testing the Predicitive Value of Subjective Labour Supply Data," Discussion Paper 1997-25, Tilburg University, Center for Economic Research.
  20. Drolet, Marie & Morissette, Rene, 1997. "Working More? Working Less? What Do Canadian Workers Prefer?," Analytical Studies Branch Research Paper Series 1997104e, Statistics Canada, Analytical Studies Branch.
  21. Ilmakunnas, Seija & Pudney, Stephen, 1990. "A model of female labour supply in the presence of hours restrictions," Journal of Public Economics, Elsevier, vol. 41(2), pages 183-210, March.
  22. Arthur van Soest & Isolde Woittiez & Arie Kapteyn, 1990. "Labor Supply, Income Taxes, and Hours Restrictions in the Netherlands," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 517-558.
  23. repec:ese:iserwp:2000-13 is not listed on IDEAS
  24. Martijn P. Tummers & Isolde Woittiez, 1991. "A Simultaneous Wage and Labor Supply Model with Hours Restrictions," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 393-423.
  25. Biddle, Jeff E, 1988. "Intertemporal Substitution and Hours Restrictions," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 347-51, May.
  26. Ball, Laurence, 1990. "Intertemporal Substitution and Constraints on Labor Supply: Evidence from Panel Data," Economic Inquiry, Western Economic Association International, vol. 28(4), pages 706-24, October.
  27. Joseph Altonji & Christina Paxson, 1987. "Labor Supply Preferences, Hours Constraints, and Hours-Wage Tradeoffs," Working Papers 594, Princeton University, Department of Economics, Industrial Relations Section..
  28. Boozer, Michael A., 1997. "Econometric Analysis of Panel Data Badi H. Baltagi Wiley, 1995," Econometric Theory, Cambridge University Press, vol. 13(05), pages 747-754, October.
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Citations

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Cited by:
  1. Nadia Steiber, 2008. ""How Many Hours Would you Want to Work a Week?": Job Quality and the Omitted Variables Bias in Labour Supply Models," SOEPpapers on Multidisciplinary Panel Data Research 121, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Francis Green & Nicholas Tsitsianis, 2004. "Can the Changing Nature of Jobs Account for National Trends in Job Satisfaction?," Studies in Economics 0406, Department of Economics, University of Kent.
  3. repec:ese:iserwp:2002-22 is not listed on IDEAS
  4. Mark P. Taylor, 2006. "Tell me why I don't like Mondays: investigating day of the week effects on job satisfaction and psychological well-being," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(1), pages 127-142.
  5. repec:ese:iserwp:2004-03 is not listed on IDEAS
  6. repec:ese:iserwp:2001-06 is not listed on IDEAS
  7. Böheim, René & Taylor, Mark, 2004. "And in the Evening She's a Singer with the Band – Second Jobs, Plight or Pleasure?," IZA Discussion Papers 1081, Institute for the Study of Labor (IZA).

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