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Labor Supply and Occupational Choice

Author

Listed:
  • Andrés Erosa
  • Luisa Fuster
  • Gueorgui Kambourov
  • Richard Rogerson

Abstract

We document a robust negative relationship between mean annual hours in an occupation and the dispersion of annual hours within that occupation. We study a unified model of occupational choice and labor supply that features heterogeneity across occupations in the return to working additional hours and show that it can match the key features of the data both qualitatively and quantitatively. Occupational choice in our model is shaped both by selection on comparative advantage and selection on tastes for leisure. Our quantitative work finds that the dominant source of differences in hours across occupations is selection on tastes for leisure.

Suggested Citation

  • Andrés Erosa & Luisa Fuster & Gueorgui Kambourov & Richard Rogerson, 2022. "Labor Supply and Occupational Choice," NBER Working Papers 30492, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30492
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    Cited by:

    1. Gallipoli, Giovanni & Alonzo, Davide, 2023. "The Changing Value of Employment and Its Implications," CEPR Discussion Papers 17943, C.E.P.R. Discussion Papers.

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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