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Timing, Fragmentation of Work and Income Inequality - An Earnings Treatment Effects Approach

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  • Joachim Merz
  • Paul Böhm
  • Derik Burgert

    ()
    (LEUPHANA University Lüneburg,Department of Economic, Behaviour and Law Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)))

Abstract

Traditional welfare analyses based on money income needs to be broadened by its time dimension. In the course of time the traditional full-time work is diminishing and new labour arrangements are discussed (keyword: flexible labour markets). Our study is contributing to economic well-being by adding insights into particular work effort characteristics - the daily timing of work and its fragmentation - and its resulting income distribution. With our focus on ‘who is working when within a day with which earnings consequences’ we go beyond traditional labour market analyses with its working time division into aggregated full and part time work, working hours spread across a week and weekend, life time working etc. Whereas the first part of our study is describing the distribution of timing and fragmentation of daily work time and its resulting income based on more than 35.000 diaries of the recent German Time Budget Survey 2001/2002, the second part of our study quantifies determinants of arrangement specific earnings functions detecting significant explanatory pattern of what is behind. The economic theory behind is a human capital approach in a market and non-market context, extended by non-market time use, the partner’s working condition, social networking as well as household and regional characteristics. The econometrics use a treatment effects type interdependent estimation of endogenous participation (selection) in a daily working hour pattern (self-selection)and pattern specific earnings function explanation.

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File URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ffb/files/publikationen/diskussion/DP_48_timing_fragmentation.pdf
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Bibliographic Info

Paper provided by Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg in its series FFB-Discussionpaper with number 48.

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Length: 49 pages
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:leu:wpaper:48

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Web page: http://ffb.uni-lueneburg.de/repec/leu/
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Related research

Keywords: time use and inequality; timing and fragmentation of work time; working hour arrangements; labour supply; earnings explanation; human capital; market and non-market time use; time use diary data; treatment effects modelling; endogenous self-selection; German time budget survey 2001/2002;

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References

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  1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  2. Doiron, Denise J & Barrett, Garry F, 1996. "Inequality in Male and Female Earnings: The Role of Hours and Wages," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 410-20, August.
  3. Jenkins, Stephen P & O'Leary, Nigel C, 1996. "Household Income Plus Household Production: The Distribution of Extended Income in the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 401-19, December.
  4. Soest, A.H.O. van & Woittiez, I.B. & Kapteyn, A.J., 1990. "Labor supply, income taxes and hours restrictions in the Netherlands," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364378, Tilburg University.
  5. repec:ese:iserwp:2000-22 is not listed on IDEAS
  6. Joshua Angrist, 1999. "Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Working papers 99-31, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, 2nd ed," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, July.
  8. Richard Blundell & Thomas MaCurdy, 1998. "Labour supply: a review of alternative approaches," IFS Working Papers W98/18, Institute for Fiscal Studies.
  9. Hamermesh, Daniel S, 1999. "The Timing of Work over Time," Economic Journal, Royal Economic Society, vol. 109(452), pages 37-66, January.
  10. Ham, John C, 1982. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," Review of Economic Studies, Wiley Blackwell, vol. 49(3), pages 335-54, July.
  11. Hamermesh, Daniel S., 2000. "Timing, Togetherness and Time Windfalls," IZA Discussion Papers 173, Institute for the Study of Labor (IZA).
  12. Joachim Merz, 2002. "Time Use Research and Time Use Data – Actual Topics and New Frontiers," FFB-Discussionpaper 32, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  13. Merz, Joachim, 1994. "Microsimulation - A Survey of Methods and Applications for Analyzing Economic and Social Policy," MPRA Paper 7232, University Library of Munich, Germany.
  14. Hamermesh, Daniel S, 1998. "When We Work," American Economic Review, American Economic Association, vol. 88(2), pages 321-25, May.
  15. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
  16. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
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Cited by:
  1. Hugh Millward & Jamie Spinney, 2009. "Time use and rurality – Canada 2005," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 109-129, September.
  2. Timo Anttila & Tomi Oinas & Jouko Nätti, 2009. "Predictors of time famine among Finnish employees – Work, family or leisure?," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 73-91, September.
  3. Katerina Vrotsou & Kajsa Ellegård & Matthew Cooper, 2009. "Exploring time diaries using semi-automated activity pattern extraction," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 1-25, September.
  4. Sandra L. Hofferth, 2009. "Changes in American children’s time – 1997 to 2003," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 26-47, September.
  5. Sajeda Amin & Luciana Suran, 2009. "Terms of marriage and time-use patterns of young wives – Evidence from rural Bangladesh," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 92-108, September.
  6. Merz, Joachim & Osberg, Lars, 2006. "Keeping in Touch – A Benefit of Public Holidays," MPRA Paper 5738, University Library of Munich, Germany.
  7. Joachim Merz & Lars Osberg, 2009. "Keeping in touch – A benefit of public holidays using time use diary data," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 130-166, September.
  8. Killian Mullan & Lyn Craig, 2009. "Harmonising extended measures of parental childcare in the time-diary surveys of four countries – Proximity versus responsibility," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(1), pages 48-72, September.

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