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Working Hours Flexibility and Older Workers' Labor Supply

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  • Gielen, A. C.

    (Tilburg University, Center for Economic Research)

Abstract

This paper studies the presence of hours constraints on the UK labor market and its effect on older workers labor supply, both at the extensive and the intensive margin. Using panel data for the period 1991-2004, the results from a competing risks model show that over-employed male workers can freely reduce working hours with their current employer prior to full retirement. However, some over-employed women are observed to leave the labor market early due to hours constraints. Despite the fact that hours constraints may shorten working lives of older women, this paper presents some explorative results which illustrate that increasing working hours flexibility does not seem to increase older workers total labor supply as is often suggested.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2007-49.

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Date of creation: 2007
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Handle: RePEc:dgr:kubcen:200749

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

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Keywords: Labor supply; hours constraint; mobility; retirement;

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References

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  1. Gielen, A. C. & Ours, J.C. van, 2005. "Age-specific Cyclical Effects in Job Reallocation and Labor Mobility," Discussion Paper 2005-86, Tilburg University, Center for Economic Research.
  2. Charles Decicca, 2007. "Hours Flexibility And Retirement," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 251-267, 04.
  3. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  4. Daniel S. Hamermesh, 1987. "The Demand for Labor in the Long Run," NBER Working Papers 1297, National Bureau of Economic Research, Inc.
  5. Joseph G. Altonji & Christina H. Paxson, 1990. "Labor Supply, Hours Constraints and Job Mobility," NBER Working Papers 3474, National Bureau of Economic Research, Inc.
  6. Michaud, P.C., 2003. "Joint Labour Supply Dynamics of Older Couples," Discussion Paper 2003-69, Tilburg University, Center for Economic Research.
  7. Blau, David M. & Riphahn, Regina T., 1999. "Labor force transitions of older married couples in Germany," Labour Economics, Elsevier, vol. 6(2), pages 229-252, June.
  8. Joseph G. Altonji & Christina H. Paxson, 1986. "Job Characteristics and Hours of Work," NBER Working Papers 1895, National Bureau of Economic Research, Inc.
  9. Sarah Smith & James Banks, 2006. "Retirement in the UK," The Centre for Market and Public Organisation 06/140, Department of Economics, University of Bristol, UK.
  10. van de Coevering, Clement & Foster, Daniel & Haunit, Paula & Kennedy, Cathal & Meagher, Sarah & Van den Berg, Jennie, 2006. "Estimating economic and social welfare impacts of pension reform," MPRA Paper 1623, University Library of Munich, Germany.
  11. Eytan Sheshinski, 2006. "Longevity and Aggregate Savings," CESifo Working Paper Series 1828, CESifo Group Munich.
  12. repec:ese:iserwp:2002-28 is not listed on IDEAS
  13. Eytan Sheshinski, 2006. "Note on Longevity and Aggregate Savings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(2), pages 353-356, 07.
  14. 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.
  15. Stewart, Mark B & Swaffield, Joanna K, 1997. "Constraints on the Desired Hours of Work of British Men," Economic Journal, Royal Economic Society, vol. 107(441), pages 520-35, March.
  16. Alan L. Gustman & Thomas L. Steinmeier, 2004. "Minimum Hours Constraints, Job Requirements and Retirement," NBER Working Papers 10876, National Bureau of Economic Research, Inc.
  17. Meghir, Costas & Whitehouse, Edward, 1997. "Labour market transitions and retirement of men in the UK," Journal of Econometrics, Elsevier, vol. 79(2), pages 327-354, August.
  18. Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany.
  19. Wolf, Elke, 1998. "Do hours restrictions matter? A discrete family labor supply model with endogenous wages and hours restrictions," ZEW Discussion Papers 98-44, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  20. René Böheim & Mark P. Taylor, 2004. "Actual and Preferred Working Hours," British Journal of Industrial Relations, London School of Economics, vol. 42(1), pages 149-166, 03.
  21. Shulamit B. Kahn & Kevin Lang, 1995. "The Causes of Hours Constraints: Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 914-28, November.
  22. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
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Citations

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Cited by:
  1. Bernhard Boockmann & Jan Fries & Christian Göbel, 2012. "Specific Measures for Older Employees and Late Career Employment," IAW Discussion Papers 89, Institut für Angewandte Wirtschaftsforschung (IAW).
  2. Bell, David N.F. & Rutherford, Alasdair C., 2013. "Older Workers and Working Time," IZA Discussion Papers 7546, Institute for the Study of Labor (IZA).
  3. Stephan Humpert & Christian Pfeifer, 2011. "Explaining Age and Gender Differences in Employment Rates: A Labor Supply Side Perspective," Working Paper Series in Economics 214, University of Lüneburg, Institute of Economics.
  4. Sergi Jiménez Martín & Judit Vall Castello, 2009. "Business Cycle Effects on Labour Force Transitions for Older People in Spain," Working Papers 2009-25, FEDEA.
  5. Fouarge Didier & Baaijens Christine, 2009. "Job Mobility and hours of work: the effect of Dutch legislation," ROA Research Memorandum 004, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  6. Graf, Nikolaus & Hofer, Helmut & Winter-Ebmer, Rudolf, 2009. "Labour Supply Effects of a Subsidised Old-Age Part-Time Scheme in Austria," IZA Discussion Papers 4239, Institute for the Study of Labor (IZA).

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