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Added worker effect revisited through the French working time reduction experiment

Author Info

Listed author(s):
  • Matthieu Bunel

    (GATE - Groupe d'analyse et de théorie économique - CNRS - UL2 - Université Lumière - Lyon 2 - Ecole Normale Supérieure Lettres et Sciences Humaines)

Abstract

This paper studies the impact of the French working time reduction experiment on the family labour supply. I expanded on the conventional added worker effect in order to analyse successively the effect of the ''35 hours'' on two dimensions of the spouse's labour supply: the probability to participate in the labour market and the working hours. Econometric tests are carried out on 10 000 couples drawn from the French EMPLOI survey of the INSEE. In the first estimation using Heckman's and Cogan's fixed costs frameworks, I found that working time reduction reduces the spouse's working hours when he (she) works. In the second one, using a multivariate probit analysis, I found that it increases the spouse's probability to join the labour force when he (she) was outside of the labour market in the previous period.

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Paper provided by HAL in its series Post-Print with number halshs-00178452.

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Date of creation: Jun 2002
Publication status: Published in Working Paper du GATE 2002-09. 2002
Handle: RePEc:hal:journl:halshs-00178452
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00178452
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

Keywords: added worker effect; family labour supply; fixed costs; multivariate probit; simultaneous equations; Working time reduction; coûts fixes; effet d'un travailleur additionnel; modèles d'équations simultanées; offre de travail familiale; probit multivariée; réduction du temps de travail;

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  1. Berger, Mark C. & Fleisher, Belton M., 1984. "Husband's health and wife's labor supply," Journal of Health Economics, Elsevier, vol. 3(1), pages 63-75, April.
  2. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
  3. Jennifer Hunt, 1998. "Hours Reductions as Work-Sharing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1), pages 339-381.
  4. Maloney, Tim, 1991. "Unobserved Variables and the Elusive Added Worker Effect," Economica, London School of Economics and Political Science, vol. 58(230), pages 173-187, May.
  5. Blank, Rebecca M, 1988. "Simultaneously Modeling the Supply of Weeks and Hours of Work among Female Household Heads," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 177-204, April.
  6. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
  7. Johnson, William R & Skinner, Jonathan, 1986. "Labor Supply and Marital Separation," American Economic Review, American Economic Association, vol. 76(3), pages 455-469, June.
  8. Haurin, Donald R, 1989. "Women's Labor Market Reactions to Family Disruptions," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 54-61, February.
  9. Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-235, May.
  10. Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-963, June.
  11. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  12. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
  13. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
  14. Fernandez, Ana I. & Rodriguez-Poo, Juan M. & Sperlich, Stefan, 2001. "A note on the parametric three step estimator in structural labor supply models," Economics Letters, Elsevier, vol. 74(1), pages 31-41, December.
  15. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
  16. Cullen, Julie Berry & Gruber, Jonathan, 2000. "Does Unemployment Insurance Crowd Out Spousal Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 546-572, July.
  17. James J. Heckman & Thomas E. Macurdy, 1980. "A Life Cycle Model of Female Labour Supply," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 47-74.
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