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The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model

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  • Flabbi, Luca

    ()
    (Inter-American Development Bank)

  • Moro, Andrea

    ()
    (Vanderbilt University)

Abstract

This paper develops and estimates a search model of the labor market where jobs are characterized by wages and work-hours flexibility. Flexibility is valued by workers, and is costly to provide for employers. The model generates observed wage distributions directly related to the preference for flexibility parameters: the higher the preference for flexibility, the wider is the support of the wage distribution at flexible jobs and the larger is the discontinuity between the wage distribution at flexible and non-flexible jobs. Estimation results show that more than one third of women place positive value to flexibility, with women with a college degree valuing flexibility more than women with a high school degree. Counterfactual experiments show that flexibility has a substantial impact on the wage distribution but not on the unemployment rate. We comment on the implications of our approach for gender differentials in wages and schooling.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4829.

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Length: 40 pages
Date of creation: Mar 2010
Date of revision:
Publication status: published in: Journal of Econometrics, 2012, 168 (1), 81–95
Handle: RePEc:iza:izadps:dp4829

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Related research

Keywords: work-hours flexibility; structural estimation; search model;

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References

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  1. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Estimating The Effect Of Racial Discrimination On First Job Wage Offers," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 384-392, August.
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  19. Usui, Emiko, 2012. "Gender Occupational Segregation in an Equilibrium Search Model," CIS Discussion paper series 560, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
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Citations

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Cited by:
  1. Flabbi, Luca & Mabli, James, 2012. "Household Search or Individual Search: Does It Matter? Evidence from Lifetime Inequality Estimates," IZA Discussion Papers 6908, Institute for the Study of Labor (IZA).
  2. Flabbi, Luca & Moro, Andrea, 2010. "The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model," IZA Discussion Papers 4829, Institute for the Study of Labor (IZA).
  3. FANG Zheng & Chris SAKELLARIOU, 2010. "Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts," Economic Growth centre Working Paper Series 1004, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre.
  4. Paul Sullivan & Ted To, 2014. "Search and Nonwage Job Characteristics," Journal of Human Resources, University of Wisconsin Press, vol. 49(2), pages 472-507.
  5. Giovanni Sulis, 2008. "Gender Wage Differentials in Italy: A Structural Estimation Approach," LABORatorio R. Revelli Working Papers Series 74, LABORatorio R. Revelli, Centre for Employment Studies.
  6. Liu, Kai, 2012. "Explaining the Gender Wage Gap: Estimates from a Dynamic Model of Job Changes and Hours Changes," Discussion Paper Series in Economics 15/2012, Department of Economics, Norwegian School of Economics.

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