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Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding

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  • RENNA Francesco
  • OAXACA Ronald L.
  • CHOE Chung

Abstract

This paper develops a uni?ed model of dual and unitary job holding based on a Stone-Geary utility function. The model incorporates both constrained and unconstrained labor supply. Panel data methods are adapted to accommodate multinomial selection into 6 mutually exclusive labor supply regimes. We derive and estimate the associated Slutsky equation wage and income elasticities using data from the British Household Panel Survey 1991- 2008. Our study ?nds that the income and wage elasticities are much larger for labor supply to job 2 compared with job 1.

Suggested Citation

  • RENNA Francesco & OAXACA Ronald L. & CHOE Chung, 2013. "Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding," LISER Working Paper Series 2013-03, Luxembourg Institute of Socio-Economic Research (LISER).
  • Handle: RePEc:irs:cepswp:2013-03
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    References listed on IDEAS

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    10. Chung Choe & Ronald L. Oaxaca & Francesco Renna, 2018. "Constrained vs unconstrained labor supply: the economics of dual job holding," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1279-1319, October.
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    Cited by:

    1. Renna Francesco & Oaxaca Ronald L. & Choe Chung, 2023. "Is There a Business Cycle Effect on the Incidence of Dual Job Holding?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 23(2), pages 443-465, April.
    2. Gregory Gilpin, 2020. "Policy‐Induced School Calendar Changes and Teacher Moonlighting," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 989-1018, January.
    3. Chung Choe & Ronald L. Oaxaca & Francesco Renna, 2018. "Constrained vs unconstrained labor supply: the economics of dual job holding," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1279-1319, October.
    4. Gregory Gilpin, 2018. "Policy-induced School Calendar Changes and Teacher Moonlighting," CAEPR Working Papers 2018-009, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    5. Kawakami, Atsushi, 2019. "Multiple job holding as a strategy for skills development," Japan and the World Economy, Elsevier, vol. 49(C), pages 73-83.
    6. Merja Kauhanen, 2021. "Multiple job holding in the changing labour market – evidence from Finland," Working Papers 331, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    7. Choe, Chung & Oaxaca, Ronald L. & Renna, Francesco, 2020. "Income Taxation and Dual Job Labour Supply," IZA Discussion Papers 13107, Institute of Labor Economics (IZA).
    8. Philipp Lentge, 2022. "Second job holding in Germany – a persistent feature?," Working Paper Series in Economics 416, University of Lüneburg, Institute of Economics.

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    More about this item

    Keywords

    dual job; labor supply; Stone-Geary;
    All these keywords.

    JEL classification:

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

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