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

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  • Altonji, Joseph G
  • Paxson, Christina H

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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Bibliographic 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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  1. Deardorff, Alan V & Stafford, Frank P, 1976. "Compensation of Cooperating Factors," Econometrica, Econometric Society, vol. 44(4), pages 671-84, July.
  2. Ann P. Bartel, 1980. "Wages, Nonwage Job Characteristics, and Labor Mobility," NBER Working Papers 0552, National Bureau of Economic Research, Inc.
  3. John Abowd & Orley Ashenfelter, 1980. "Anticipated Unemployment, Temporary Layoffs and Compensating Wage Differentials," Working Papers 517, Princeton University, Department of Economics, Industrial Relations Section..
  4. Barzel, Yoram, 1973. "The Determination of Daily Hours and Wages," The Quarterly Journal of Economics, MIT Press, vol. 87(2), pages 220-38, May.
  5. John C. Ham, 1979. "Rationing and the Supply of Labor: An Econometric Approach," Working Papers 483, Princeton University, Department of Economics, Industrial Relations Section..
  6. 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.
  7. 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.
  8. Brown, Charles, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 113-34, February.
  9. Shelly J. Lundberg, 1984. "Tied Wage-Hours Offers and the Endogeneity of Wages," NBER Working Papers 1431, National Bureau of Economic Research, Inc.
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