The hypothesis that employers have an interest in the hours worked by their employees suggests that hours and wages are systematically related. Since employer interest may constrain employee hours of work, individuals realize their preferences for hours through their choices of jobs. An important implication of this hypothesis is that the intertemporal labor supply elasticity is manifested in labor supply responses to wage changes between jobs.
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Paper provided by California Irvine - School of Social Sciences in its series Papers with number
00-01-15.
Find related papers by JEL classification: J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
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