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Timing and fragmentation of daily working hours arrangements and income inequality – An earnings treatment effects approach with German time use diary data

Author

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  • Joachim Merz

    () (Department of Economic, Law and Behavioural Social Sciences Leuphana University Lüneburg Research Institute on Professions (Forschungsinstitut Freie Berufe, FFB))

  • Paul Böhm

    () (Department of Economic, Law and Behavioural Social Sciences Leuphana University Lüneburg Research Institute on Professions (Forschungsinstitut Freie Berufe, FFB))

  • Derik Burgert

    () (Department of Economic, Law and Behavioural Social Sciences Leuphana University Lüneburg Research Institute on Professions (Forschungsinstitut Freie Berufe, FFB))

Abstract

Traditional well-being 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) with consequences on the daily work arrangements. Our study is contributing to the research on economic well-being and working hours arrangements by adding insights into particular daily work effort characteristics and its resulting income distribution. The work effort characteristics we regard is about labour market flexibility with focus on relations between the daily timing of work and its fragmentation, and its consequences on the income distribution. 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 most recent German Time Budget Survey 2001/2002, the second part of our study quantifies determinants of arrangement specific earnings functions detecting significant explanatory patterns of what is behind. The related economic theory 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 in a daily working hour pattern (self-selection) and pattern specific earnings function explanation. The overall result: Individual earnings in Germany are dependent on and significant different with regard to the daily working hours arrangement capturing timing and fragmentation of work. Market and non-market factors are important and significant in explaining participation and earnings thereof.

Suggested Citation

  • Joachim Merz & Paul Böhm & Derik Burgert, 2009. "Timing and fragmentation of daily working hours arrangements and income inequality – An earnings treatment effects approach with German 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(2), pages 200-239, September.
  • Handle: RePEc:leu:journl:2009:vol6:issue2:p200-239
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    File URL: http://www2.leuphana.de/ffb/eijtur/pdf/volumes/eijtur-6-2.pdf#page=39
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    References listed on IDEAS

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    1. Jonathan Gershuny & John Robinson, 1988. "Historical changes in the household division of labor," Demography, Springer;Population Association of America (PAA), vol. 25(4), pages 537-552, November.
    2. Kay Axhausen & Andrea Zimmermann & Stefan Schönfelder & Guido Rindsfüser & Thomas Haupt, 2002. "Observing the rhythms of daily life: A six-week travel diary," Transportation, Springer, vol. 29(2), pages 95-124, May.
    3. Andrew Harvey, 1993. "Guidelines for time use data collection," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 30(2), pages 197-228, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Joachim Merz & Tim Rathjen, 2011. "Zeit- und Einkommensarmut von Freien Berufen und Unternehmern," FFB-Discussionpaper 89, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    2. Dominik Hanglberger & Joachim Merz, 2015. "Does self-employment really raise job satisfaction? Adaptation and anticipation effects on self-employment and general job changes," Working Papers 385, ECINEQ, Society for the Study of Economic Inequality.
    3. Merz, Joachim & Rathjen, Tim, 2016. "Entrepreneurs and Freelancers: Are They Time and Income Multidimensional Poor? The German Case," IZA Discussion Papers 9912, Institute for the Study of Labor (IZA).
    4. Dominik Hanglberger, 2011. "Arbeitszufriedenheit im internationalen Vergleich," FFB-Discussionpaper 86, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    5. Dawson, C G, 2014. "Optimism, Job Satisfaction and Self-Employment," Department of Economics Working Papers 39313, University of Bath, Department of Economics.

    More about this item

    Keywords

    Time use and inequality; timing and fragmentation of daily work time; daily working hours arrangements; earnings explanation; human capital; market and non-market time use; German Time Budget Survey 2001/2002; time use diary data; treatment effects modelling; selfselection with endogenous selection;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D3 - Microeconomics - - Distribution
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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