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Labor Supply, Flexible Hours and Real Estate Agents

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  • John D. Benjamin
  • Peter Chinloy
  • Daniel T. Winkler

Abstract

Real estate agents have flexibility in choosing hours and employers. These responses are tested with a five‐equation recursive model. Agents choose between full‐ and part‐time work. The conditional wage measures productivity adjusted for self‐selection to each status. Hours worked in each status depend on the fitted after‐tax wage and household income, yielding flexible supply elasticities. Using a 2005 survey of 8,450 U.S. real estate agents, a year of experience raises the full‐time hourly wage by 2.5%. Conditional hours worked decline by 0.6%, implying an earnings return of 1.9% per year of experience. The labor supply elasticity for full‐time agents is 0.21; it is almost zero for part timers.

Suggested Citation

  • John D. Benjamin & Peter Chinloy & Daniel T. Winkler, 2009. "Labor Supply, Flexible Hours and Real Estate Agents," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 37(4), pages 747-767, December.
    • Handle: RePEc:bla:reesec:v:37:y:2009:i:4:p:747-767
    DOI: 10.1111/j.1540-6229.2009.00262.x
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    References listed on IDEAS

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    Cited by:

    1. Michael J. Seiler, 2014. "The Effect of Perceived Lender Characteristics and Market Conditions on Strategic Mortgage Defaults," Framed Field Experiments 00628, The Field Experiments Website.
    2. Daniel T. Winkler & W. Keener Hughen, 2012. "Fringe Benefits Compensation of Real Estate Agents and Brokers," International Real Estate Review, Global Social Science Institute, vol. 15(3), pages 253-281.
    3. Marcus T. Allen & Justin D. Benefield & Ronald C. Rutherford, 2023. "Co-Listing Strategies: Better Transaction Outcomes?," The Journal of Real Estate Finance and Economics, Springer, vol. 67(3), pages 517-544, October.
    4. Turnbull, Geoffrey K. & Waller, Bennie D., 2018. "(What) do top performing real estate agents deliver for their clients?," Journal of Housing Economics, Elsevier, vol. 41(C), pages 142-152.
    5. Michael Seiler, 2014. "The Effect of Perceived Lender Characteristics and Market Conditions on Strategic Mortgage Defaults," The Journal of Real Estate Finance and Economics, Springer, vol. 48(2), pages 256-270, February.
    6. Jonathan Wiley & Justin Benefield & Marcus Allen, 2014. "Cyclical Determinants of Brokerage Commission Rates," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 196-219, January.

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