Labor Supply Preferences, Hours Constraints, and Hours-Wage Trade-Offs
In a labor market with tied hours-wage packages and wage dispersion for a partic ular type of job, constrained workers may be willing to sacrifice wag e gains for better hours when changing jobs. Likewise, workers may ac cept jobs offering undesirable hours only if the associated wage gain s are large. The authors investigate this issue empirically by examin ing whether overemployment and underemployment on the initial new job affects the relation between hours changes and wage changes for quit ters. Their results generally support the view that an individual req uires compensation to work in a job that, given the individual's part icular preferences, offers unattractive hours. Copyright 1988 by University of Chicago Press.
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