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Hours Restrictions and Labor Supply

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  • Dickens, William T
  • Lundberg, Shelly J

Abstract

The authors estimate a labor-supply model that permits hours restrictions of a simple but general form. Each individual chooses from among a finite set of jobs drawn at random f rom a market distribution, each offering a fixed quantity of hours. The polar cases of no constraints on hours worked and exogenous hours ar e nested within the general case. The authors' results are consistent with a substantial amount of rationing in the work hours of a sample of low-income men, most of whom are working less than they would like. Copyright 1993 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Dickens, William T & Lundberg, Shelly J, 1993. "Hours Restrictions and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 169-192, February.
  • Handle: RePEc:ier:iecrev:v:34:y:1993:i:1:p:169-92
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    1. Alan L. Gustman & Thomas L. Steinmeier, 1984. "Partial Retirement and the Analysis of Retirement Behavior," ILR Review, Cornell University, ILR School, vol. 37(3), pages 403-415, April.
    2. Lundberg, Shelly J, 1985. "Tied Wage-Hours Offers and the Endogeneity of Wages," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 405-410, August.
    3. Moffitt, Robert, 1982. "The Tobit Model, Hours of Work and Institutional Constraints," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 510-515, August.
    4. Rosen, Harvey S, 1976. "Taxes in a Labor Supply Model with Joint Wage-Hours Determination," Econometrica, Econometric Society, vol. 44(3), pages 485-507, May.
    5. Deaton, Angus & Meullbauer, John, 1981. "Functional Forms for Labor Supply and Commodity Demands with and without Quantity Restrictions," Econometrica, Econometric Society, vol. 49(6), pages 1521-1532, November.
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