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Labor Supply Preferences, Hours Constraints, and Hours-Wage Trade-Offs

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Author Info
Altonji, Joseph G
Paxson, Christina H

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Abstract

In a labor market with tied hours-wage packages and wage dispersion for a partic ular type of job, constrained workers may be willing to sacrifice wag e gains for better hours when changing jobs. Likewise, workers may ac cept jobs offering undesirable hours only if the associated wage gain s are large. The authors investigate this issue empirically by examin ing whether overemployment and underemployment on the initial new job affects the relation between hours changes and wage changes for quit ters. Their results generally support the view that an individual req uires compensation to work in a job that, given the individual's part icular preferences, offers unattractive hours. Copyright 1988 by University of Chicago Press.

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

Volume (Year): 6 (1988)
Issue (Month): 2 (April)
Pages: 254-76
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Handle: RePEc:ucp:jlabec:v:6:y:1988:i:2:p:254-76

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-66, October. [Downloadable!] (restricted)
  2. Biddle, J.E. & Zarkin, G.A., 1989. "Choice Among Wage-Hours Packages: An Ampirical Investigation Of Labour Supply," Papers 8809, Michigan State - Econometrics and Economic Theory.
  3. John C. Ham, 1979. "Rationing and the Supply of Labor: An Econometric Approach," Working Papers 483, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  4. Shelly J. Lundberg, 1984. "Tied Wage-Hours Offers and the Endogeneity of Wages," NBER Working Papers 1431, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Deardorff, Alan V & Stafford, Frank P, 1976. "Compensation of Cooperating Factors," Econometrica, Econometric Society, vol. 44(4), pages 671-84, July. [Downloadable!] (restricted)
  6. Brown, Charles, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 113-34, February. [Downloadable!] (restricted)
  7. Ann P. Bartel, 1980. "Wages, Nonwage Job Characteristics, and Labor Mobility," NBER Working Papers 0552, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Barzel, Yoram, 1973. "The Determination of Daily Hours and Wages," The Quarterly Journal of Economics, MIT Press, vol. 87(2), pages 220-38, May. [Downloadable!] (restricted)
  9. John M. Abowd & Orley C. Ashenfelter, 1981. "Anticipated Unemployment, Temporary Layoffs, and Compensating Wage Differentials," NBER Chapters, in: Studies in Labor Markets, pages 141-186 National Bureau of Economic Research, Inc. [Downloadable!]
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