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ICT and Substitution between Out-of-home and At-home Work; the Importance of Timing

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  • Thomas de Graaff

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Piet Rietveld

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

This paper investigates the determinants of at home and out-of-home labor supply in the Netherlands in the 199s, focusing on the presence of ICT technologies in households -in particular modempossession.To investigate these determinants, a sequential hurdle model is estimated where people first decideto work and then decide to divide total labor supply in at home and out-of-home labor supply. Tocorrect for possible endogeneity, the modem variable is estimated with use of instrumental variables.When we only consider office hours, possession of ICT facilities at home stimulates both at homeand out-of-home labor supply. Thus, the two may be called complements from the ICT perspective.However, outside office hours, modem possession leads to less work out-of-home. During this part ofthe day the time worked less on the job is partly substituted by work at home. Thus, during thispart of the week we find that substitution dominates. However, since labor supply during office hoursdominates labor supply during the rest of the week we find complementarity as the main feature ofoverall labor supply. These results underline the importance of timing issues.

Suggested Citation

  • Thomas de Graaff & Piet Rietveld, 2003. "ICT and Substitution between Out-of-home and At-home Work; the Importance of Timing," Tinbergen Institute Discussion Papers 03-061/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20030061
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    Cited by:

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    2. Mohammad Abu Afrahim Bhuiyan & Shakil Mohammad Rifaat & Richard Tay & Alex De Barros, 2020. "Influence of Community Design and Sociodemographic Characteristics on Teleworking," Sustainability, MDPI, vol. 12(14), pages 1-10, July.
    3. Miruna Sarbu, 2015. "Determinants of Work-at-Home Arrangements for German Employees," LABOUR, CEIS, vol. 29(4), pages 444-469, December.
    4. Sarbu, Miruna, 2018. "The role of telecommuting for work-family conflict among German employees," Research in Transportation Economics, Elsevier, vol. 70(C), pages 37-51.
    5. Bris, Myriam & Pawlak, Jacek & Polak, John W., 2017. "How is ICT use linked to household transport expenditure? A cross-national macro analysis of the influence of home broadband access," Journal of Transport Geography, Elsevier, vol. 60(C), pages 231-242.

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    More about this item

    Keywords

    Bivariate tobit; Labor supply; Modem possession; Netherlands; At home labor supply; Out-of-home labor supply; Teleworking.;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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