Economics at your fingertips  

The Effect of Changes in Wages, GDP, and Workers' Demographic Characteristics on Working Hours

Adi Brender () and Lior Gallo ()
Additional contact information
Lior Gallo: Bank of Israel

Israel Economic Review, 2009, vol. 7, issue 1, 143-176

Abstract: In this study we estimate the effect of changes in the employee's offered wage - which is influenced by macroeconomic developments and changes in tax rates - on working hours, accounting for changes in the employee's personal circumstances (family status and composition, entering or exiting school, reaching the pension age and spousal income and employment). We use repeat observations of workers in Israeli labor-force surveys to identify workers at more than one point in time. With the help of these data, we also examine whether the elasticities differ between population groups distinguished by demographic characteristics, schooling, employment characteristics in the first period and family income. The estimation shows that wage changes have little effect on working hours and, among full-time employees, have no effect at all. In contrast, working hours are quite elastic to changes in GDP. Among men, other than those from low-income families, this elasticity surpasses the elasticity in the extensive margin. Among women, working hours' elasticity to GDP growth is positive only among new entrants to the labor market, those approaching the retirement age, and those in low-wage occupations. However, in these groups - about one-third of working women - the elasticity was twice that found among men.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Israel Economic Review from Bank of Israel Contact information at EDIRC.
Bibliographic data for series maintained by Yossi Yakhin ().

Page updated 2023-03-26
Handle: RePEc:boi:isrerv:v:7:y:2009:i:1:p:143-176