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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, LISER.
  • Handle: RePEc:irs:cepswp:2013-03
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    References listed on IDEAS

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    1. Anders Frederiksen & Ebbe Krogh Graversen & Nina Smith, 2008. "Overtime work, dual job holding, and taxation," Research in Labor Economics,in: Work, Earnings and Other Aspects of the Employment Relation, volume 28, pages 25-55 Emerald Publishing Ltd.
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    3. Zhongmin Wu & Mark Baimbridge & Yu Zhu, 2009. "Multiple job holding in the United Kingdom: evidence from the British Household Panel Survey," Applied Economics, Taylor & Francis Journals, vol. 41(21), pages 2751-2766.
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    6. Amuedo-Dorantes, Catalina & Kimmel, Jean, 2005. "Moonlighting Behavior over the Business Cycle," IZA Discussion Papers 1671, Institute for the Study of Labor (IZA).
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    8. Krishnan, Pramila, 1990. "The Economics of Moonlighting: A Double Self-Selection Model: Errata," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 712-712, November.
    9. 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, LISER.
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    15. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
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    1. 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, LISER.

    More about this item

    Keywords

    dual job; labor supply; Stone-Geary;

    JEL classification:

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

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