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Working Hours Flexibility and Older Workers' Labor Supply

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  • Gielen, A. C.

    (Tilburg University, Center For Economic Research)

Abstract

This paper studies the presence of hours constraints on the UK labor market and its effect on older workers labor supply. Using panel data for the period 1991-2004, the results from a competing risks model show that over-employed male workers can freely reduce working hours with their current employer before retiring completely. However, some over-employed women are observed to leave the labor market early due to hours constraints. This suggests that more flexibility in working hours can increase the labor market participation for some older workers as has often been suggested. Copyright 2009 , Oxford University Press.
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Suggested Citation

  • Gielen, A. C., 2007. "Working Hours Flexibility and Older Workers' Labor Supply," Discussion Paper 2007-49, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:e6763d55-764e-48a4-a8bd-dfc989b7cc24
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    References listed on IDEAS

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    Cited by:

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    2. Elsayed, Ahmed & de Grip, Andries & Fouarge, Didier & Montizaan, Raymond, 2018. "Gradual retirement, financial incentives, and labour supply of older workers: Evidence from a stated preference analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 277-294.
    3. Graf, Nikolaus & Hofer, Helmut & Winter-Ebmer, Rudolf, 2011. "Labor supply effects of a subsidized old-age part-time scheme in Austria," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(3), pages 217-229.
    4. Boockmann, Bernhard & Fries, Jan & Göbel, Christian, 2018. "Specific measures for older employees and late career employment," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 159-174.
    5. Hans FEHR, 2010. "Pension Reform with Variable Retirment Age," EcoMod2010 259600055, EcoMod.
    6. Börsch-Supan, A. & Härtl, K. & Leite, D.N., 2016. "Social Security and Public Insurance," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 781-863, Elsevier.
    7. Andrea Albanese & Bart Cockx & Yannick Thuy, 2020. "Working time reductions at the end of the career: Do they prolong the time spent in employment?," Empirical Economics, Springer, vol. 59(1), pages 99-141, July.
    8. Bell, David N.F. & Rutherford, Alasdair C., 2013. "Older workers and working time," The Journal of the Economics of Ageing, Elsevier, vol. 1, pages 28-34.
    9. Kevin E. Cahill & Michael D. Giandrea & Joseph F. Quinn, 2014. "The Impact of Hours Flexibility on Career Employment, Bridge Jobs, and the Timing of Retirement," Boston College Working Papers in Economics 880, Boston College Department of Economics.
    10. Carmen Camacho & Fabio Mariani & Luca Pensieroso, 2017. "Illegal immigration and the shadow economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1050-1080, December.
    11. Rowena A Pecchenino & Julie Byrne, 2017. "Heigh Ho, Heigh Ho:The Way We (Would Like to) Work Now," Economics Department Working Paper Series n282-17.pdf, Department of Economics, National University of Ireland - Maynooth.
    12. Miranti, Riyana & Li, Jinjing, 2020. "Working hours mismatch, job strain and mental health among mature age workers in Australia," The Journal of the Economics of Ageing, Elsevier, vol. 15(C).
    13. Sergi Jiménez Martín & Judit Vall Castello, 2009. "Business Cycle Effects on Labour Force Transitions for Older People in Spain," Working Papers 2009-25, FEDEA.
    14. Fang, Tony & Lin, Carl & Tang, Xueli, 2018. "How Has the Two-Day Weekend Policy Affected Labour Supply and Household Work in China?," IZA Discussion Papers 11698, Institute of Labor Economics (IZA).
    15. Fouarge, D. & Baaijens, F P., 2009. "Job mobility and hours of work: the effect of Dutch legislation," ROA Research Memorandum 004, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    16. Julie Byrne & Rowena A. Pecchenino, 2019. "Heigh Ho, Heigh Ho: flexible labor contracts with real option characteristics," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 54(1), pages 25-34, January.
    17. Muriel Dejemeppe & Catherine Smith & Bruno der Linden, 2015. "Did the Intergenerational Solidarity Pact increase the employment rate of older workers in Belgium? A macro-econometric evaluation," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    18. Börsch-Supan, Axel & Härtl, Klaus & Leite, Duarte N., 2018. "Earnings test, non-actuarial adjustments and flexible retirement," Economics Letters, Elsevier, vol. 173(C), pages 78-83.
    19. Kanabar, Ricky, 2015. "Post-retirement labour supply in England," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 123-132.
    20. İsmail ŞENTÜRK, 2020. "Desired Labour Supply of the Unemployed in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(43).

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    More about this item

    Keywords

    Labor supply; hours constraint; mobility; retirement;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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