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Job changes, hours changes and the path of labour supply adjustment

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Author Info
Richard Blundell () (Institute for Fiscal Studies and University College London)
Mike Brewer () (Institute for Fiscal Studies)
Marco Francesconi (Institute for Fiscal Studies and ISER, Essex University)

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Abstract

This paper uses the first twelve waves of the British Household Panel Survey covering the period 1991-2002 to investigate single women's labour supply changes in response to three tax and benefit policy reforms that occurred in the 1990s. We find evidence of small labour supply effects for two of such reforms. A third reform in 1999 instead led to a significant increase in single mothers' hours of work. This increase was primarily driven by women who changed job, suggesting that labour supply adjustments within a job are harder than across jobs. The presence of hours inflexibility within jobs and labour supply adjustments through job mobility are strongly confirmed when we look at hours changes by stated labour supply preferences. Finally, we find little overall effect on wages.

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Publisher Info
Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W05/21.

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Length: 35 pp.
Date of creation: Oct 2005
Date of revision:
Handle: RePEc:ifs:ifsewp:05/21

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Related research
Keywords: Job mobility; Hours flexibility; Labour supply preferences; Hours-wage trade-off; Monopsony;

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  7. Marco Francesconi & Wilbert van der Klaauw, 2007. "The Socioeconomic Consequences of "In-Work" Benefit Reform for British Lone Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(1). [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sara Connolly & Mary Gregory, 2007. "Moving Down: Women’s Part-time Work and Occupational Change in Britain 1991-2001," IZA Discussion Papers 3106, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Nadia Steiber, 2008. ""How Many Hours Would you Want to Work a Week?": Job Quality and the Omitted Variables Bias in Labour Supply Models," SOEPpapers 121, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
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