Constrained vs unconstrained labor supply: the economics of dual job holding

B-Tier
Journal: Journal of Population Economics
Year: 2018
Volume: 31
Issue: 4
Pages: 1279-1319

Authors (3)

Chung Choe (not in RePEc) Ronald L. Oaxaca (Institute of Labor Economics (...) Francesco Renna (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract This paper develops a unified model of dual and unitary job holding based on a Stone-Geary utility function. The model incorporates both constrained and unconstrained labor supply. Panel data methods are adapted to accommodate unobserved heterogeneity and multinomial selection into six mutually exclusive labor supply regimes. We estimate the wage and income elasticities arising from selection and unobserved heterogeneity as well as from the Stone-Geary Slutsky equations. The labor supply model is estimated with data from the British Household Panel Survey 1991–2008. Among dual job holders, our study finds that the Stone-Geary income and wage elasticities are much larger for labor supply to the second job compared with the main job. When the effects of selection and unobserved heterogeneity are taken account of, the magnitudes of these elasticities on the second job tend to be significantly reduced.

Technical Details

RePEc Handle
repec:spr:jopoec:v:31:y:2018:i:4:d:10.1007_s00148-017-0678-4
Journal Field
Growth
Author Count
3
Added to Database
2026-01-25