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Job Changes and Hours Changes: Understanding the Path of Labour Supply Adjustment

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  • Blundell, Richard

    ()
    (University College London)

  • Brewer, Mike

    ()
    (ISER, University of Essex)

  • Francesconi, Marco

    ()
    (University of Essex)

Abstract

This paper uses British panel data to investigate single women’s labour supply changes in response to three tax and benefit policy reforms that occurred in the 1990s. These reforms changed individuals’ work incentives and we use them to identify changes in labour supply. We find evidence of small hours of work effects for two of such reforms. A third reform in 1999 instead led to a significant increase in single mothers’ hours of work. The mechanism by which the labour supply adjustments were made occurred largely through job changes rather than hours changes with the same employer. These results are confirmed when we look at hours changes by stated labour supply preferences. Finally, we find little overall effect of the reforms on 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 3044.

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Length: 40 pages
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:iza:izadps:dp3044

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Keywords: labour supply preferences; hours flexibility; ob mobility; hours-wage trade-off; monopsony;

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References

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Citations

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Cited by:
  1. Maria Casanova, 2012. "Wage and Earnings Profiles at Older Ages," Working Papers, Human Capital and Economic Opportunity Working Group 2012-001, Human Capital and Economic Opportunity Working Group.
  2. Marco Francesconi & Holly Sutherland & Francesca Zantomio, 2011. "A comparison of earnings measures from longitudinal and cross‐sectional surveys: evidence from the UK," Journal of the Royal Statistical Society Series A, Royal Statistical Society, Royal Statistical Society, vol. 174(2), pages 297-326, 04.
  3. Blundell, Richard & Francesconi, Marco & van der Klaauw, Wilbert, 2011. "Anatomy of Welfare Reform Evaluation: Announcement and Implementation Effects," IZA Discussion Papers 6050, Institute for the Study of Labor (IZA).
  4. Liu, Kai, 2012. "Explaining the Gender Wage Gap: Estimates from a Dynamic Model of Job Changes and Hours Changes," Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics 15/2012, Department of Economics, Norwegian School of Economics.
  5. Richard Blundell & Claire Crawford & Wenchao (Michelle) Jin, 2013. "What can wages and employment tell us about the UK's productivity puzzle?," IFS Working Papers, Institute for Fiscal Studies W13/11, Institute for Fiscal Studies.
  6. Francesconi, Marco & Rainer, Helmut & van der Klaauw, Wilbert, 2008. "Unintended Consequences of Welfare Reform: The Case of Divorced Parents," IZA Discussion Papers 3891, Institute for the Study of Labor (IZA).
  7. Maria Casanova, 2012. "Wage and Earnings Profiles at Older Ages," 2012 Meeting Papers, Society for Economic Dynamics 1166, Society for Economic Dynamics.
  8. Benito, Andrew & Saleheen, Jumana, 2012. "Labour Supply as a Buffer: Evidence from UK Households," IZA Discussion Papers 6506, Institute for the Study of Labor (IZA).
  9. Karbownik, Krzysztof & Myck, Michal, 2012. "For some mothers more than others: how children matter for labour market outcomes when both fertility and female employment are low," Working Paper Series, Center for Labor Studies, Uppsala University, Department of Economics 2012:17, Uppsala University, Department of Economics.
  10. Gong, Xiaodong & Breunig, Robert, 2013. "Channels of Labour Supply Responses of Lone Parents to Changed Work Incentives," IZA Discussion Papers 7574, Institute for the Study of Labor (IZA).
  11. Francesconi, Marco & Rainer, Helmut & Klaauw,, 2013. "Unintended consequences of welfare reform for children with single parents: a theoretical analysis," Munich Reprints in Economics, University of Munich, Department of Economics 20333, University of Munich, Department of Economics.
  12. Teresa Schlüter, 2013. "Real Wages, Amenities and the Adjustment of Working Hours Across Regional Labour Markets," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0130, Spatial Economics Research Centre, LSE.
  13. Richard Disney & John Gathergood, 2013. "House Prices, Wealth Effects and Labour Supply," Discussion Papers, University of Nottingham, School of Economics 13/02, University of Nottingham, School of Economics.
  14. Zabel, Cordula, 2013. "Effects of participating in skill training and workfare on employment entries for lone mothers receiving means-tested benefits in Germany," IAB Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 201303, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  15. Keisuke Kawata, 2013. "Work Hour Mismatch and On-the-job Search," IDEC DP2 Series, Hiroshima University, Graduate School for International Development and Cooperation (IDEC) 3-6, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).

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