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What is The Price of Freedom?: Estimating Women's Willingness to Pay for Job Schedule Flexibility

Author

Listed:
  • Bustelo, Monserrat
  • Díaz Escobar, Ana María
  • Lafortune, Jeanne
  • Piras, Claudia
  • Salas Bahamón, Luz Magdalena
  • Tessada, José

Abstract

We conducted a discrete choice experiment to elicit revealed preferences of low-income women for job flexibility. We did so without deception reversing the methodology proposed by Kessler et al. (2019) for job seekers. We contrast the role of flexible time schedule with that of part-time employment. We find large willingness-to-pay for flexible schedule within a full-time contract but much less desire to trade-off wages for part-time contracts. This is not driven by inattention although participants appear to learn over the course of the experiment. We find that the willingness-to-pay for flexible work arrangement is largest for those with higher family income, more educated women and those out of the labor force, suggesting that flexibility is a luxury good. Demand for part-time employment is highest amongst those with children and older women, suggesting that part-time employment may be more responsive to time demands. We also find our estimates reflect self-declared preferences and provides evidence that public policies that foster higher flexibility could lead to higher female labor force participation.

Suggested Citation

  • Bustelo, Monserrat & Díaz Escobar, Ana María & Lafortune, Jeanne & Piras, Claudia & Salas Bahamón, Luz Magdalena & Tessada, José, 2020. "What is The Price of Freedom?: Estimating Women's Willingness to Pay for Job Schedule Flexibility," IDB Publications (Working Papers) 10248, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:10248
    DOI: http://dx.doi.org/10.18235/0002286
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    Cited by:

    1. Boltz, Marie & Cockx, Bart & Diaz, Ana Maria & Salas, Luz Magdalena, 2020. "How does working-time flexibility affect workers’ productivity in a routine job?," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    2. Marie Boltz & Bart Cockx & Ana Maria Diaz & Luz Magdalena Salas, 2023. "How does working‐time flexibility affect workers' productivity in a routine job? Evidence from a field experiment," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 159-187, March.

    More about this item

    Keywords

    schedule flexibility; part-time employment; discrete choice experiment; willingness to pay; female labor participation;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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