"How Many Hours Would you Want to Work a Week?": Job Quality and the Omitted Variables Bias in Labour Supply Models
This paper sets out to provide an understanding of how individuals form their preferences over the extent of their paid work involvement - their working time preferences - in different work environments and societal contexts. The main objective of the empirical analysis is to investigate how preferences of this kind are constructed at the individual level and adapted over time following changes in work- and familyrelated circumstances. The consideration of the Old and New Länder of Germany as cases for comparative analysis allows for a test of common factors in different contexts of economic conditions and gender relations. The empirical findings from a longitudinal analysis of the German Socio-Economic Panel (1993-2003) run counter to the predictions of neoclassical labour supply theory. This owes to a fundamental difference in terms of theoretical approach. While (most) economists tend to view paid work in instrumental terms - as something that people perform only for its monetary rewards, this study takes account of intrinsic work rewards as central determinants of work motivation. We find the qualitative experience of work to exert an independent influence on individuals' preferences over work hours, and therefore argue for the inclusion of work quality as a central factor in labour supply decisions.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: Mohrenstraße 58, D-10117 Berlin|
Web page: http://www.diw.de/en/soep
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Semykina, Anastasia & Wooldridge, Jeffrey M., 2010.
"Estimating panel data models in the presence of endogeneity and selection,"
Journal of Econometrics,
Elsevier, vol. 157(2), pages 375-380, August.
- Anastasia Semykina & Jeffrey M. Woodridge, 2010. "Estimating Panel Data Models in the Presence of Endogeneity and Selection," Working Papers wp2010_10_01, Department of Economics, Florida State University.
- Bell, Linda A. & Freeman, Richard B., 2001.
"The incentive for working hard: explaining hours worked differences in the US and Germany,"
Elsevier, vol. 8(2), pages 181-202, May.
- Linda A. Bell & Richard B. Freeman, 2000. "The Incentive for Working Hard: Explaining Hours Worked Differences in the U.S. and Germany," NBER Working Papers 8051, National Bureau of Economic Research, Inc.
- Manning, Alan, 2011.
"Imperfect Competition in the Labor Market,"
Handbook of Labor Economics,
- Alan Manning, 2010. "Imperfect Competition in the Labour Market," CEP Discussion Papers dp0981, Centre for Economic Performance, LSE.
- Alan Manning, 2010. "Imperfect competition in the labour market," LSE Research Online Documents on Economics 28729, London School of Economics and Political Science, LSE Library.
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- René Böheim & Mark P. Taylor, 2004.
"Actual and Preferred Working Hours,"
British Journal of Industrial Relations,
London School of Economics, vol. 42(1), pages 149-166, 03.
- Lane, Robert E., 1992. "Work as "disutility" and money as "happiness": Cultural origins of a basic market error," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 21(1), pages 43-64.
- Richard Blundell & Mike Brewer & Marco Francesconi, 2005. "Job changes, hours changes and the path of labour supply adjustment," IFS Working Papers W05/21, Institute for Fiscal Studies.
- BÃ¶heim, RenÃ© & Taylor, Mark P., 2001.
"Option or obligation? The determinants of labour supply preferences in Britain,"
ISER Working Paper Series
2001-05, Institute for Social and Economic Research.
- RenÈ B–heim & Mark P. Taylor, 2003. "Option Or Obligation? The Determinants Of Labour Supply Preferences In Britain," Manchester School, University of Manchester, vol. 71(2), pages 113-131, 03.
- Stewart, M.B. & Swaffield, J.K., 1996.
"Constraints on the Desired Hours of Work of British Men,"
The Warwick Economics Research Paper Series (TWERPS)
468, University of Warwick, Department of Economics.
- Stewart, Mark B & Swaffield, Joanna K, 1997. "Constraints on the Desired Hours of Work of British Men," Economic Journal, Royal Economic Society, vol. 107(441), pages 520-35, March.
- Euwals, R.W. & van Soest, A.H.O., 1996.
"Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands,"
1996-23, Tilburg University, Center for Economic Research.
- Euwals, Rob & van Soest, Arthur, 1999. "Desired and actual labour supply of unmarried men and women in the Netherlands," Labour Economics, Elsevier, vol. 6(1), pages 95-118, March.
- Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997.
"Labor Supply of New York City Cabdrivers: One Day at a Time,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 112(2), pages 407-441.
- Camerer, Colin & Babcock, Linda & Loewenstein, George & Thaler, Richard, 1996. "Labor Supply of New York City Cab Drivers: One Day At A time," Working Papers 960, California Institute of Technology, Division of the Humanities and Social Sciences.
- Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
- Elke Holst & Jürgen Schupp, 2002. "Arbeitszeitwünsche schwanken mit der Konjunktur," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 69(23), pages 370-373.
- Drago, Robert & Wooden, Mark & Black, David, 2006.
"Who Wants Flexibility? Changing Work Hours Preferences and Life Events,"
IZA Discussion Papers
2404, Institute for the Study of Labor (IZA).
- Robert Drago & David Black & Mark Wooden, 2006. "Who Wants Flexibility? Changing Work Hours Preferences and Life Events," Melbourne Institute Working Paper Series wp2006n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Rob Euwals & Bertrand Melenberg & Arthur van Soest, 1998.
"Testing the predictive value of subjective labour supply data,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 13(5), pages 567-585.
- Euwals, R.W. & Melenberg, B. & van Soest, A.H.O., 1997. "Testing the Predicitive Value of Subjective Labour Supply Data," Discussion Paper 1997-25, Tilburg University, Center for Economic Research.
- Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Francis Green & Nicholas Tsitsianis, 2005. "An Investigation of National Trends in Job Satisfaction in Britain and Germany," British Journal of Industrial Relations, London School of Economics, vol. 43(3), pages 401-429, 09.
- Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- William T. Dickens & Shelly J. Lundberg, 1985.
"Hours Restrictions and Labor Supply,"
NBER Working Papers
1638, National Bureau of Economic Research, Inc.
- Scacciati, Francesco, 2004. "Erosion of purchasing power and labor supply," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(6), pages 725-744, December.
- Miles S. Kimball & Matthew D. Shapiro, 2008. "Labor Supply: Are the Income and Substitution Effects Both Large or Both Small?," NBER Working Papers 14208, National Bureau of Economic Research, Inc.
- Rob Euwals, 2005. "The predictive value of subjective labour supply data: A partial-adjustment model with measurement error," Empirical Economics, Springer, vol. 30(2), pages 309-329, 09.
- David A. Spencer, 2006. "Work for all those who want it? Why the neoclassical labour supply curve is an inappropriate foundation for the theory of employment and unemployment," Cambridge Journal of Economics, Oxford University Press, vol. 30(3), pages 459-472, May.
- repec:sae:ilrrev:v:52:y:1999:i:3:p:361-392 is not listed on IDEAS
- Sen, Amartya K, 1973. "Behaviour and the Concept of Preference," Economica, London School of Economics and Political Science, vol. 40(159), pages 241-59, August.
- Drolet, Marie & Morissette, Rene, 1997. "Working More? Working Less? What Do Canadian Workers Prefer?," Analytical Studies Branch Research Paper Series 1997104e, Statistics Canada, Analytical Studies Branch.
- Altman, Morris, 2001. "A behavioral model of labor supply: casting some light into the black box of income-leisure choice," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 30(3), pages 199-219, May.
When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp121. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek)
If references are entirely missing, you can add them using this form.