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Hours constraints within and between jobs

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Author Info
Euwals, R. (Tilburg University, Center for Economic Research)
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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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 64.

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

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Find related papers by JEL classification:
C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General

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  1. Joseph G. Altonji & Christina H. Paxson, 1986. "Job Characteristics and Hours of Work," NBER Working Papers 1895, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Ham, John C, 1982. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," Review of Economic Studies, Blackwell Publishing, vol. 49(3), pages 335-54, July. [Downloadable!] (restricted)
  3. Deardorff, Alan V & Stafford, Frank P, 1976. "Compensation of Cooperating Factors," Econometrica, Econometric Society, vol. 44(4), pages 671-84, July. [Downloadable!] (restricted)
  4. Ball, Laurence, 1990. "Intertemporal Substitution and Constraints on Labor Supply: Evidence from Panel Data," Economic Inquiry, Oxford University Press, vol. 28(4), pages 706-24, October.
  5. 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. [Downloadable!] (restricted)
  6. O'Leary, Christopher J, 1991. "Estimating Labour Supply Functions under the Rationing Constraints of Over- and Under-Employment," Applied Economics, Taylor and Francis Journals, vol. 23(4A), pages 675-84, Part A, A.
  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. [Downloadable!] (restricted)
  8. Andrew Oswald & Ian Walker, 1993. "Labour supply, contract theory and unions," IFS Working Papers W93/21, Institute for Fiscal Studies.
  9. 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. [Downloadable!] (restricted)
  10. Euvals, R. & Melenberg, B. & Soest, A. van, 1997. "Testing the predictive value of subjective labour supply data," Discussion Paper 25, Tilburg University, Center for Economic Research. [Downloadable!]
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  11. Biddle, Jeff E, 1988. "Intertemporal Substitution and Hours Restrictions," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 347-51, May. [Downloadable!] (restricted)
  12. 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. [Downloadable!] (restricted)
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  13. Joseph G. Altonji & Christina H. Paxson, 1990. "Labor Supply, Hours Constraints and Job Mobility," NBER Working Papers 3474, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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