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Hours Constraints Within and Between Jobs

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  • Euwals, R.W.

    (Tilburg University, Center for Economic Research)

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    Abstract

    In the empirical literature on labour supply, several models are developed to incorporate constraints on working hours. These models do not address the question to which extent working hours are constrained within and between jobs. In this paper I investigate the effect of individual changes in labour supply preferences on actual working hours. The availability of subjective information on the individual’s preferred working hours gives direct measures on the degree of adjustment of working hours within and between jobs. I take the potential endogeneity of the observed changes in labour supply preferences into account by using instrumental variables techniques. Using the Dutch Socio Economic Panel, I find for women who work in two consecutive years that the degree of adjustment of working hours within jobs is significantly smaller than between jobs. I also find that job mobility does not lead to complete adjustment in working hours, as the realized adjustment is significantly less than 100 percent of the preferred adjustment.

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    Bibliographic Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1997-64.

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    Date of creation: 1997
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    Handle: RePEc:dgr:kubcen:199764

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    Web page: http://center.uvt.nl

    Related research

    Keywords: labour supply; hours constraints; job mobility; subjective data;

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    References

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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. 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.
    3. 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.
    4. Joseph G. Altonji & Christina H. Paxson, 1990. "Labor Supply, Hours Constraints and Job Mobility," NBER Working Papers 3474, National Bureau of Economic Research, Inc.
    5. Biddle, Jeff E, 1988. "Intertemporal Substitution and Hours Restrictions," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 347-51, May.
    6. Joseph Altonji & Christina Paxson, 1985. "Job Characteristics and Hours of Work," Working Papers 578, Princeton University, Department of Economics, Industrial Relations Section..
    7. Kodde, D A & Palm, Franz C & Pfann, G A, 1990. "Asymptotic Least-Squares Estimation Efficiency Considerations and Applications," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(3), pages 229-43, July-Sept.
    8. Dickens, William T & Lundberg, Shelly J, 1993. "Hours Restrictions and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 169-92, February.
    9. Ham, John C, 1982. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," Review of Economic Studies, Wiley Blackwell, vol. 49(3), pages 335-54, July.
    10. Christopher J. O'Leary, . "Estimating Labour Supply functions under the Rationing Constraints of Over- and Under-Employment," Upjohn Working Papers and Journal Articles cjo1991, W.E. Upjohn Institute for Employment Research.
    11. Moffitt, Robert, 1982. "The Tobit Model, Hours of Work and Institutional Constraints," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 510-15, August.
    12. Andrew Oswald & Ian Walker, 1993. "Labour supply, contract theory and unions," IFS Working Papers W93/21, Institute for Fiscal Studies.
    13. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
    14. 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.
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    Cited by:
    1. Senesky, Sarah, 2005. "Testing the intertemporal labor supply model: are jobs important?," Labour Economics, Elsevier, vol. 12(6), pages 749-772, December.
    2. Bloemen, H.G., 1992. "A model of labour supply with job offer restrictions," Discussion Paper 1992-39, Tilburg University, Center for Economic Research.

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