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The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model

Author

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  • Flabbi, Luca

    () (University of North Carolina, Chapel Hill)

  • Moro, Andrea

    () (Vanderbilt University)

Abstract

This paper develops and estimates a search model of the labor market where jobs are characterized by wages and work-hours flexibility. Flexibility is valued by workers, and is costly to provide for employers. The model generates observed wage distributions directly related to the preference for flexibility parameters: the higher the preference for flexibility, the wider is the support of the wage distribution at flexible jobs and the larger is the discontinuity between the wage distribution at flexible and non-flexible jobs. Estimation results show that more than one third of women place positive value to flexibility, with women with a college degree valuing flexibility more than women with a high school degree. Counterfactual experiments show that flexibility has a substantial impact on the wage distribution but not on the unemployment rate. We comment on the implications of our approach for gender differentials in wages and schooling.

Suggested Citation

  • Flabbi, Luca & Moro, Andrea, 2010. "The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model," IZA Discussion Papers 4829, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4829
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Zheng Fang & Chris Sakellariou, 2013. "Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 451-480, November.
    2. repec:aea:jeclit:v:55:y:2017:i:3:p:789-865 is not listed on IDEAS
    3. Matthew Wiswall & Basit Zafar, 2016. "Preference for the Workplace, Human Capital, and Gender," NBER Working Papers 22173, National Bureau of Economic Research, Inc.
    4. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    5. Flabbi, Luca & Moro, Andrea, 2012. "The effect of job flexibility on female labor market outcomes: Estimates from a search and bargaining model," Journal of Econometrics, Elsevier, vol. 168(1), pages 81-95.
    6. Kai Liu, 2016. "Explaining the gender wage gap: Estimates from a dynamic model of job changes and hours changes," Quantitative Economics, Econometric Society, vol. 7(2), pages 411-447, July.
    7. Giovanni Sulis, 2012. "Gender wage differentials in Italy: a structural estimation approach," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(1), pages 53-87, January.
    8. Wiswall, Matthew & Zafar, Basit, 2016. "Preference for the workplace, investment in human capital, and gender," Staff Reports 767, Federal Reserve Bank of New York, revised 01 Mar 2017.
    9. Matteo Bobba & Luca Flabbi & Santiago Levy Algazi, "undated". "Labor Market Search, Informality and Schooling Investments," IDB Publications (Working Papers) 8752, Inter-American Development Bank.
    10. V. Joseph Hotz & Per Johansson & Arizo Karimi, 2017. "Parenthood, Family Friendly Workplaces, and the Gender Gaps in Early Work Careers," NBER Working Papers 24173, National Bureau of Economic Research, Inc.
    11. Ben Sand & Chris Bidner, 2016. "Job Prospects and Pay Gaps: Theory and Evidence on the Gender Gap from U.S. Cities," Discussion Papers dp16-14, Department of Economics, Simon Fraser University.
    12. Cortes, Patricia & Pan, Jessica, 2017. "Occupation and Gender," IZA Discussion Papers 10672, Institute for the Study of Labor (IZA).
    13. Seul-Ki Shin, 2014. "Preferences vs. Opportunities: Racial/Ethnic Intermarriage in the United States," PIER Working Paper Archive 14-040, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    14. Flabbi, Luca & Mabli, James, 2012. "Household Search or Individual Search: Does It Matter? Evidence from Lifetime Inequality Estimates," IZA Discussion Papers 6908, Institute for the Study of Labor (IZA).
    15. Matthew Wiswall & Basit Zafar, 2016. "Human Capital Investments and Expectations about Career and Family," NBER Working Papers 22543, National Bureau of Economic Research, Inc.
    16. Paul Sullivan & Ted To, 2014. "Search and Nonwage Job Characteristics," Journal of Human Resources, University of Wisconsin Press, vol. 49(2), pages 472-507.
    17. Cortes, Patricia & Pan, Jessica, 2016. "Prevalence of Long Hours and Skilled Women's Occupational Choices," IZA Discussion Papers 10225, Institute for the Study of Labor (IZA).
    18. Fang, Zheng & Sakellariou, Chris, 2015. "Discrimination or Unobserved Differences in Characteristics?-An Empirical Study on Wage Inequality," MPRA Paper 68568, University Library of Munich, Germany.

    More about this item

    Keywords

    work-hours flexibility; structural estimation; search model;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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