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The Intensive and Extensive Margin of European Labour Supply

  • Hanna Kröger

    ()

  • Sandra Schaffner

Labour supply is determined by two factors: the participation of workers in the labour market (extensive margin), and the number of hours supplied by those working (intensive margin). Based on the European Union Labour Force Survey (EU-LFS), we analyse which margin is more decisive in determining overall labour supply in 24 Member States. The results reveal large diff erences between countries, even after controlling for composition effects in terms of socio-demographic and household characteristics. In addition to individual labour supply, our focus is on differences between EU Member States concerning household labour supply. Joint determination of the number of hours worked between spouses can be observed for dual-income couples in Austria, the Netherlands and Spain.

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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0291.

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Length: 32 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:rwi:repape:0291
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  1. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute for the Study of Labor (IZA).
  2. Pencavel, John, 1998. "Assortative Mating by Schooling and the Work Behavior of Wives and Husbands," American Economic Review, American Economic Association, vol. 88(2), pages 326-29, May.
  3. Albert Esteve & Clara Cortina, 2006. "Changes in educational assortative mating in contemporary Spain," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 14(17), pages 405-428, May.
  4. Daniela Del Boca & Silvia Pasqua & Chiara Pronzato, 2009. "Motherhood and market work decisions in institutional context: a European perspective," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages i147-i171, April.
  5. Bredemeier, Christian & Juessen, Falko, 2010. "Assortative Mating and Female Labor Supply," IZA Discussion Papers 5118, Institute for the Study of Labor (IZA).
  6. Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-35, May.
  7. Antecol, Heather, 2000. "An examination of cross-country differences in the gender gap in labor force participation rates," Labour Economics, Elsevier, vol. 7(4), pages 409-426, July.
  8. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
  9. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May.
  10. Genre, Véronique & Gómez-Salvador, Ramón & Lamo, Ana, 2005. "European women: Why do(n't) they work?," Working Paper Series 0454, European Central Bank.
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