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What triggers multiple job holding? An experimental investigation

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  • Dickey, Heather
  • Watson, Verity
  • Zangelidis, Alexandros

Abstract

This paper presents an empirical examination of individuals’ motivations for multiple-job holding or moonlighting. Theoretical models of moonlighting suggest that individuals to hold a second job for either financial reasons (they face hours-constraints in their first job) or non-pecuniary motives (heterogeneous jobs). We assess the relative importance of these reasons using a purposefully collected stated preference data set. We find that individuals respond to financial constraints by having multiple-jobs, but these financial motives are not sufficient to explain moonlighting. We also find that individuals are attracted to the non-pecuniary aspects of the second jobs, such as job satisfaction and entrepreneurial opportunities. Furthermore, we find evidence that second job holding may be a hedging strategy against job insecurity in the primary job. Our empirical results contribute to a better understanding of this labour market behaviour.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17575.

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Date of creation: Sep 2009
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Handle: RePEc:pra:mprapa:17575

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Keywords: Multiple-job holding; discrete choice experiment;

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  1. Shishko, Robert & Rostker, Bernard, 1976. "The Economics of Multiple Job Holding," American Economic Review, American Economic Association, American Economic Association, vol. 66(3), pages 298-308, June.
  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. 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.
  4. Jayson Lusk & T Schroeder, 2004. "Are choice experiments incentive compatible? A test with quality differentiated beef steaks," Artefactual Field Experiments, The Field Experiments Website 00096, The Field Experiments Website.
  5. 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.
  6. 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).
  7. Liljas, Bengt & Blumenschein, Karen, 2000. "On hypothetical bias and calibration in cost-benefit studies," Health Policy, Elsevier, Elsevier, vol. 52(1), pages 53-70, May.
  8. Karen Blumenschein & GlennC. Blomquist & Magnus Johannesson & Nancy Horn & Patricia Freeman, 2008. "Eliciting Willingness to Pay Without Bias: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 118(525), pages 114-137, 01.
  9. Alessandra Guariglia & Byung-Yeon Kim, 2006. "The dynamics of moonlighting in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 14(1), pages 1-45, 03.
  10. 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).
  11. 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.
  12. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
  13. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
  14. 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.
  15. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 74, pages 132.
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