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ICT and Substitution between Out-of-home and At-home Work; the Importance of Timing


Author Info

  • Thomas de Graaff

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Piet Rietveld

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)


This paper investigates the determinants of at home and out-of-home labor supply in the Netherlands in the 199s, focusing on the presence of ICT technologies in households -in particular modempossession.To investigate these determinants, a sequential hurdle model is estimated where people first decideto work and then decide to divide total labor supply in at home and out-of-home labor supply. Tocorrect for possible endogeneity, the modem variable is estimated with use of instrumental variables.When we only consider office hours, possession of ICT facilities at home stimulates both at homeand out-of-home labor supply. Thus, the two may be called complements from the ICT perspective.However, outside office hours, modem possession leads to less work out-of-home. During this part ofthe day the time worked less on the job is partly substituted by work at home. Thus, during thispart of the week we find that substitution dominates. However, since labor supply during office hoursdominates labor supply during the rest of the week we find complementarity as the main feature ofoverall labor supply. These results underline the importance of timing issues.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-061/3.

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Date of creation: 25 Jul 2003
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Handle: RePEc:dgr:uvatin:20030061

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Related research

Keywords: Bivariate tobit; Labor supply; Modem possession; Netherlands; At home labor supply; Out-of-home labor supply; Teleworking.;

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  1. Mokhtarian, Patricia L. & Salomon, Ilan, 1996. "Modeling the Choice of Telecommuting 2: A Case of the Preferred Impossible Alternative," University of California Transportation Center, Working Papers qt7br7039r, University of California Transportation Center.
  2. Patricia Mokhtarian & Ilan Salomon, 2005. "Modeling the Choice of Telecommuting 3: Identifying the Choice Set and Estimating Binary Choice Models for Technology-Based Alternatives," Labor and Demography 0505010, EconWPA.
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Cited by:
  1. de Graaff, Thomas & Rietveld, Piet, 2007. "Substitution between working at home and out-of-home: The role of ICT and commuting costs," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(2), pages 142-160, February.


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