The Relationship between Hours of Work and Labor Force Participation in Four Models of Labor Supply Behavior

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The Relationship between Hours of Work and Labor Force Participation in Four Models of Labor Supply Behavior

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Zabel, Jeffrey E

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Jeffrey Zabel

Abstract

This article analyzes the relationship between hours of work and labor force participation in J. J. Heckman's model, J. F. Cogan's fixed-cost model, R. Moffitt's minimum hours constraint model, and a generalized version of Heckman's model. First, the parameter restrictions between the labor force participation and reduced-form hours-of-work equations are compared. The models are then estimated and the results support the weakening of the link between the labor force participation and hours-of-work decisions. One implication of the analysis is that Heckman's model overstates the standard labor supply elasticities because it confounds the direct effect on labor supply with the participation effect. Copyright 1993 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 11 (1993)
Issue (Month): 2 (April)
Pages: 387-416
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Handle: RePEc:ucp:jlabec:v:11:y:1993:i:2:p:387-416

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Maroesjka Versantvoort & Lambert van der Laan, 1998. "Analysing Labour Supply in a Lifestyle Perspective," Tinbergen Institute Discussion Papers 98-010/3, Tinbergen Institute. [Downloadable!]
R. R. Bryant & A. Jayawardhana & V. A. Samaranayake & A. Wilhite, . "The impact of alcohol and drug use on employment: A labor market study using the National Longitudinal Survey of Youth," Institute for Research on Poverty Discussion Papers 1092-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
Nada Eissa & Jeffrey B. Liebman, 1995. "Labor Supply Response to the Earned Income Tax Credit," NBER Working Papers 5158, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Eissa, Nada & Liebman, Jeffrey B, 1996. "Labor Supply Response to the Earned Income Tax Credit," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 605-37, May. [Downloadable!] (restricted)

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