EconPapers    
Economics at your fingertips  
 

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

Chung Choe (), Ronald Oaxaca and Francesco Renna ()
Additional contact information
Francesco Renna: University of Akron

Journal of Population Economics, 2018, vol. 31, issue 4, No 9, 1279-1319

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.

Keywords: Dual job; Labor supply; Stone-Geary; Hours constraint (search for similar items in EconPapers)
JEL-codes: J01 J22 J49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s00148-017-0678-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding (2017) Downloads
Working Paper: Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding (2013) Downloads
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: https://EconPapers.repec.org/RePEc:spr:jopoec:v:31:y:2018:i:4:d:10.1007_s00148-017-0678-4

Ordering information: This journal article can be ordered from
http://www.springer. ... tion/journal/148/PS2

DOI: 10.1007/s00148-017-0678-4

Access Statistics for this article

Journal of Population Economics is currently edited by K.F. Zimmermann

More articles in Journal of Population Economics from Springer, European Society for Population Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2020-10-28
Handle: RePEc:spr:jopoec:v:31:y:2018:i:4:d:10.1007_s00148-017-0678-4