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The Economics of Dual Job Holding: A Job Portfolio Model of Labor Supply

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Author Info

  • Renna, Francesco

    ()
    (University of Akron)

  • Oaxaca, Ronald L.

    ()
    (University of Arizona)

Abstract

In this paper we develop a job portfolio model of dual job holding based on a Stone-Geary utility function. We derive the associated Slutsky equation components. Because the job portfolio model applies only to unconstrained dual jobholders, we separate individuals who moonlight because of an hours constraint from dual jobholders who work on two job for reasons different from an hours constraint. Income and wage elasticities are estimated for workers without hours constraints using data from the May 1991 supplement to the Current Population Survey. Our study finds that the income and compensated wage elasticities are much larger for labor supply to job 2 compared with job 1.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1915.

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Length: 27 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:iza:izadps:dp1915

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Keywords: dual job; labor supply; Stone-Geary;

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References

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  1. Christina H. Paxson & Nachum Sicherman, 1994. "The Dynamics of Dual-Job Holding and Job Mobility," NBER Working Papers 4968, National Bureau of Economic Research, Inc.
  2. 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.
  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. 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.
  5. 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.
  6. Krishnan, Pramila, 1990. "The Economics of Moonlighting: A Double Self-Selection Model," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 361-67, May.
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Cited by:
  1. Dolado, Juan J. & Felgueroso, Florentino, 2008. "Occupational Mismatch and Moonlighting Among Spanish Physicians: Do Couples Matter?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6803, C.E.P.R. Discussion Papers.

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