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ICT and substitution between out-of-home and at-home work: the importance of timing


  • Thomas de Graaff
  • Piet Rietveld


This paper investigates the determinants of at-home and out-of-home labor supply in the Netherlands in the 1990s, focusing on the presence of information and computer technology (ICT) in households -- in particular modem possession. To investigate these determinants, a sequential hurdle model is estimated in which people first decide to work and then decide to divide total labor supply in at-home and out-of-home labor supply. To correct for possible endogeneity, the modem variable is estimated by means of instrumental variables. When we consider only office hours, possession of ICT facilities at home stimulates both at-home and out-of-home labor supply. Thus, the two may be called complements from the ICT perspective. However, outside office hours, modem possession leads to less work out of home. During this part of the day the time worked less on the job is partly substituted by work at home. Thus, during this part of the week we find that substitution dominates. However, because labor supply during office hours dominates labor supply during the rest of the week we find complementarity as the main feature of overall labor supply. These results underline the importance of timing issues.

Suggested Citation

  • Thomas de Graaff & Piet Rietveld, 2004. "ICT and substitution between out-of-home and at-home work: the importance of timing," Environment and Planning A, Pion Ltd, London, vol. 36(5), pages 879-896, May.
  • Handle: RePEc:pio:envira:v:36:y:2004:i:5:p:879-896

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    References listed on IDEAS

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    8. Maki, Atsushi & Nishiyama, Shigeru, 1996. "An analysis of under-reporting for micro-data sets: The misreporting or double-hurdle model," Economics Letters, Elsevier, vol. 52(3), pages 211-220, September.
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    Cited by:

    1. de Graaff, Thomas & Rietveld, Piet, 2007. "Substitution between working at home and out-of-home: The role of ICT and commuting costs," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(2), pages 142-160, February.

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply


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