Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding
AbstractThis paper develops a uni?ed model of dual and unitary job holding based on a Stone-Geary utility function. The model incorporates both constrained and unconstrained labor supply. Panel data methods are adapted to accommodate multinomial selection into 6 mutually exclusive labor supply regimes. We derive and estimate the associated Slutsky equation wage and income elasticities using data from the British Household Panel Survey 1991- 2008. Our study ?nds that the income and wage elasticities are much larger for labor supply to job 2 compared with job 1.
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Bibliographic InfoPaper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2013-03.
Length: 40 pages
Date of creation: Mar 2013
Date of revision:
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More information through EDIRC
dual job; labor supply; Stone-Geary;
Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-24 (All new papers)
- NEP-LAB-2013-06-24 (Labour Economics)
- NEP-LMA-2013-06-24 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2013-06-24 (Unemployment, Inequality & Poverty)
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