"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: |
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.:
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- 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.
- 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.
- 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.
- Anastasia Semykina & Jeffrey M. Woodridge, 2010.
"Estimating Panel Data Models in the Presence of Endogeneity and Selection,"
wp2010_10_01, Department of Economics, Florida State University.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Bell, Linda A. & Freeman, Richard B., 2001. "The incentive for working hard: explaining hours worked differences in the US and Germany," Labour Economics, Elsevier, vol. 8(2), pages 181-202, May.
- 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.
- 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.
- 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.
- 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.
- 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 169-92, February.
- 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.
- Camerer, Colin, et al, 1997.
"Labor Supply of New York City Cabdrivers: One Day at a Time,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(2), pages 407-41, May.
- 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.
- 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.
- 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.
- 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.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- 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.
- 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.
- Stewart, Mark B & Swaffield, Joanna K, 1997.
"Constraints on the Desired Hours of Work of British Men,"
Royal Economic Society, vol. 107(441), pages 520-35, March.
- 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.
- 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.
- Bruce E. Kaufman, 1999. "Expanding the behavioral foundations of labor economics," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(3), pages 361-392, April.
- 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..
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.