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The Evolution of Multiple Jobholding in the U.S. Labor Market: The Complete Picture of Gross Worker Flows

Author

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  • Lalé, Etienne

    (York University, Canada)

Abstract

The U.S. labor market experienced a more than 20 percent reduction in the share of workers holding multiple jobs over the past 20 years. While this substantial trend is receiving increasing attention, the literature lacks a comprehensive picture of the gross worker flows that underlie the evolution of multiple jobholding. In this paper, first we construct new estimates of worker transitions into and out of multiple jobholding based on a Markov chain model that addresses several measurement issues. In particular, we show that time-aggregation bias cannot be ignored, as has been done in previous studies: workers typically hold a second job for a short period of time, which imparts a large bias in the estimates of transition probabilities. We go on to conduct a decomposition of the downward trend in multiple jobholding into the evolution of the underlying worker flows. This decomposition indicates that the trend is overwhelmingly explained by the dwindling propensity of full-time workers to take on a second job. We view the decrease in multiple jobholding as another manifestation of the changing labor supply behavior of U.S. workers observed during the past decades.

Suggested Citation

  • Lalé, Etienne, 2016. "The Evolution of Multiple Jobholding in the U.S. Labor Market: The Complete Picture of Gross Worker Flows," IZA Discussion Papers 10355, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10355
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    References listed on IDEAS

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    Cited by:

    1. Olena Kostyshyna & Etienne Lalé, 2022. "On the evolution of multiple jobholding in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(2), pages 1095-1134, May.
    2. Etienne Lalé, 2019. "Search and Multiple Jobholding," Upjohn Working Papers 19-305, W.E. Upjohn Institute for Employment Research.
    3. Schulz, Matthias & Urbig, Diemo & Procher, Vivien, 2017. "The role of hybrid entrepreneurship in explaining multiple job holders’ earnings structure," Journal of Business Venturing Insights, Elsevier, vol. 7(C), pages 9-14.
    4. Etienne Lale, 2022. "Search and Multiple Jobholding," Working Papers 22-07, Chair in macroeconomics and forecasting, University of Quebec in Montreal's School of Management.

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    More about this item

    Keywords

    multiple jobholding; worker flows; trend decomposition;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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