Job changes, hours changes and the path of labour supply adjustment

Richard Blundell (), Mike Brewer and Marco Francesconi

No W05/21, IFS Working Papers from Institute for Fiscal Studies

Abstract: This paper uses the first twelve waves of the British Household Panel Survey covering the period 1991-2002 to investigate single women's labour supply changes in response to three tax and benefit policy reforms that occurred in the 1990s. We find evidence of small labour supply effects for two of such reforms. A third reform in 1999 instead led to a significant increase in single mothers' hours of work. This increase was primarily driven by women who changed job, suggesting that labour supply adjustments within a job are harder than across jobs. The presence of hours inflexibility within jobs and labour supply adjustments through job mobility are strongly confirmed when we look at hours changes by stated labour supply preferences. Finally, we find little overall effect on wages.

Keywords: Job mobility; Hours flexibility; Labour supply preferences; Hours-wage trade-off; Monopsony (search for similar items in EconPapers)
JEL-codes: C23 H31 I38 J12 J13 J22 (search for similar items in EconPapers)
Pages: 35 pp.
Date: 2005-10-14
New Economics Papers: this item is included in nep-lab, nep-ltv and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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