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The effect of job flexibility on female labor market outcomes: Estimates from a search and bargaining model

  • Flabbi, Luca
  • Moro, Andrea

In this article, we develop a search model of the labor market in which jobs are characterized by work hours’ flexibility. Workers value flexibility, which is costly for employers to provide. We estimate the model on a sample of women extracted from the CPS. The model parameters are empirically identified because the accepted wage distributions of flexible and non-flexible jobs are directly related to the preference for flexibility parameters. Results show that more than one-third of women place a small, positive value on flexibility. Women with a college degree value flexibility more than women with only a high school degree. Counterfactual experiments show that flexibility has a substantial impact on the wage distribution but a negligible impact on the unemployment rate. These results suggest that wage and schooling differences between males and females may be importantly related to flexibility.

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Article provided by Elsevier in its journal Journal of Econometrics.

Volume (Year): 168 (2012)
Issue (Month): 1 ()
Pages: 81-95

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Handle: RePEc:eee:econom:v:168:y:2012:i:1:p:81-95
Contact details of provider: Web page: http://www.elsevier.com/locate/jeconom

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