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Moonlighting Behavior over the Business Cycle

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  • Amuedo-Dorantes, Catalina

    ()
    (San Diego State University)

  • Kimmel, Jean

    ()
    (Western Michigan University)

Abstract

Using data from the 1979 National Longitudinal Survey of Youth, we examine the cyclicality by sex of moonlighting and moonlighting hours. We find that, once we account for the sample selection into employment, both men and women exhibit procyclical moonlighting probabilities. Likewise, moonlighting hours for male multiple job holders are procyclical. These findings contradict the frequent claim that moonlighting increases during economic downturns due to economic hardship. Instead, moonlighting appears responsive to growing employment opportunities during economic expansions. At any rate, the systematic variation of moonlighting over the business cycle may have implications for the procyclical nature of real wages.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1671.

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Length: 32 pages
Date of creation: Jul 2005
Date of revision:
Publication status: published as 'Moonlighting over the Business Cycle' in: Economic Inquiry, 2009, 47 (4), 754 - 765
Handle: RePEc:iza:izadps:dp1671

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Keywords: business cycles; moonlighting; multiple job holding; U.S.;

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References

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  1. Donggyun Shin & Gary Solon, 2006. "New Evidence on Real Wage Cyclicality within Employer-Employee Matches," NBER Working Papers 12262, National Bureau of Economic Research, Inc.
  2. Smith Conway, Karen & Kimmel, Jean, 1998. "Male labor supply estimates and the decision to moonlight," Labour Economics, Elsevier, Elsevier, vol. 5(2), pages 135-166, June.
  3. Susan Averett, 2001. "Moonlighting: multiple motives and gender differences," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 33(11), pages 1391-1410.
  4. Hart, Robert A. & Malley, James R., 1999. "On the Cyclicality and Stability of Real Earnings," IZA Discussion Papers 45, Institute for the Study of Labor (IZA).
  5. Bell, David & Hart, Robert A & Wright, Robert E, 1997. "Multiple Job Holding as a 'Hedge' Against Unemployment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1626, C.E.P.R. Discussion Papers.
  6. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, Elsevier, vol. 32(3), pages 385-397, August.
  7. Gary Solon & Warren Whatley & Ann Huff Stevens, 1997. "Wage changes and intrafirm job mobility over the business cycle: Two case studies," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(3), pages 402-415, April.
  8. Paul J. Devereux, 2001. "The Cyclicality of real wages within employer-employee matches," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(4), pages 835-850, July.
  9. Böheim, René & Taylor, Mark P., 2004. "And in the evening she's a singer with the band: second jobs, plight or pleasure," ISER Working Paper Series 2004-03, Institute for Social and Economic Research.
  10. W. David Allen, 1998. "The moonlighting decision of unmarried men and women: Family and labor market influences," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 26(2), pages 190-205, June.
  11. Heineck, Guido & Schwarze, Johannes, 2004. "Fly Me to the Moon: The Determinants of Secondary Jobholding in Germany and the UK," IZA Discussion Papers 1358, Institute for the Study of Labor (IZA).
  12. Helen Robinson & Jonathan Wadsworth, 2004. "Did The Minimum Wage Affect The Incidence Of Second Job Holding In Britain?," Royal Economic Society Annual Conference 2004, Royal Economic Society 24, Royal Economic Society.
  13. Jean Kimmel & Karen Smith Conway, 1995. "Who Moonlights and Why?: Evidence from the SIPP," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 95-40, W.E. Upjohn Institute for Employment Research.
  14. Shin, Donggyun, 1994. "Cyclicality of real wages among young men," Economics Letters, Elsevier, Elsevier, vol. 46(2), pages 137-142, October.
  15. Solon, Gary & Barsky, Robert & Parker, Jonathan A, 1994. "Measuring the Cyclicality of Real Wages: How Important Is Composition Bias?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 109(1), pages 1-25, February.
  16. Jean Kimmel & Lisa M. Powell, 1999. "Moonlighting Trends and Related Policy Issues in Canada and the United States," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 25(2), pages 207-231, June.
  17. Patricia M. Anderson & Bruce D. Meyer, 2005. "Unemployment Insurance Tax Burdens and Benefits: Funding Family Leave and Reforming the Payroll Tax," Working Papers, Harris School of Public Policy Studies, University of Chicago 0601, Harris School of Public Policy Studies, University of Chicago.
  18. Mark Partridge, 2002. "Moonlighting in a High Growth Economy: Evidence from U.S. State-Level Data," Growth and Change, Gatton College of Business and Economics, University of Kentucky, Gatton College of Business and Economics, University of Kentucky, vol. 33(4), pages 424-452.
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Cited by:
  1. Panos, Georgios A. & Pouliakas, Konstantinos & Zangelidis, Alexandros, 2009. "The Inter-Related Dynamics of Dual Job Holding, Human Capital and Occupational Choice," IZA Discussion Papers 4437, Institute for the Study of Labor (IZA).
  2. Robinson, Helen & Wadsworth, Jonathan, 2006. "The Impact of the Minimum Wage on the Incidence of Second Job Holding in Britain," Cardiff Economics Working Papers E2006/14, Cardiff University, Cardiff Business School, Economics Section.
  3. RENNA Francesco & OAXACA Ronald L. & CHOE Chung, 2013. "Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding," CEPS/INSTEAD Working Paper Series 2013-03, CEPS/INSTEAD.

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