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Timing, Fragmentation of Work and Income Inequality - An Earnings Treatment Effects Approach

  • Joachim Merz
  • Paul Böhm
  • Derik Burgert

    ()

    (LEUPHANA University Lüneburg,Department of Economic, Behaviour and Law Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)))

Traditional welfare analyses based on money income needs to be broadened by its time dimension. In the course of time the traditional full-time work is diminishing and new labour arrangements are discussed (keyword: flexible labour markets). Our study is contributing to economic well-being by adding insights into particular work effort characteristics - the daily timing of work and its fragmentation - and its resulting income distribution. With our focus on ‘who is working when within a day with which earnings consequences’ we go beyond traditional labour market analyses with its working time division into aggregated full and part time work, working hours spread across a week and weekend, life time working etc. Whereas the first part of our study is describing the distribution of timing and fragmentation of daily work time and its resulting income based on more than 35.000 diaries of the recent German Time Budget Survey 2001/2002, the second part of our study quantifies determinants of arrangement specific earnings functions detecting significant explanatory pattern of what is behind. The economic theory behind is a human capital approach in a market and non-market context, extended by non-market time use, the partner’s working condition, social networking as well as household and regional characteristics. The econometrics use a treatment effects type interdependent estimation of endogenous participation (selection) in a daily working hour pattern (self-selection)and pattern specific earnings function explanation.

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File URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ffb/files/publikationen/diskussion/DP_48_timing_fragmentation.pdf
File Function: First version, 2005
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Paper provided by Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg in its series FFB-Discussionpaper with number 48.

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Length: 49 pages
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:leu:wpaper:48
Contact details of provider: Web page: http://ffb.uni-lueneburg.de/repec/leu/

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  1. Hamermesh, Daniel S., 2000. "Timing, Togetherness and Time Windfalls," IZA Discussion Papers 173, Institute for the Study of Labor (IZA).
  2. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
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  4. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, June.
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  7. Merz, Joachim, 1994. "Microsimulation - A Survey of Methods and Applications for Analyzing Economic and Social Policy," MPRA Paper 7232, University Library of Munich, Germany.
  8. John C. Ham, 1980. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," Working Papers 521, Princeton University, Department of Economics, Industrial Relations Section..
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  10. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
  11. Hamermesh, Daniel S, 1999. "The Timing of Work over Time," Economic Journal, Royal Economic Society, vol. 109(452), pages 37-66, January.
  12. Joachim Merz, 2002. "Time Use Research and Time Use Data – Actual Topics and New Frontiers," FFB-Discussionpaper 32, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  13. Joshua Angrist, 1999. "Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Working papers 99-31, Massachusetts Institute of Technology (MIT), Department of Economics.
  14. Jenkins, Stephen P & O'Leary, Nigel C, 1996. "Household Income Plus Household Production: The Distribution of Extended Income in the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 401-19, December.
  15. Kapteyn, A. & Soest, A.V. & Woittiez, I., 1989. "Labour Supply, Income Taxes And Hours Restrictions In The Netherlands," Papers 8903, Tilburg - Center for Economic Research.
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  17. Hamermesh, Daniel S, 1998. "When We Work," American Economic Review, American Economic Association, vol. 88(2), pages 321-25, May.
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