The Relationship between Hours of Work and Labor Force Participation in Four Models of Labor Supply Behavior

Jeffrey Zabel

Journal of Labor Economics, 1993, vol. 11, issue 2, 387-416

Abstract: This article analyzes the relationship between hours of work and labor force participation in J. J. Heckman's model, J. F. Cogan's fixed-cost model, R. Moffitt's minimum hours constraint model, and a generalized version of Heckman's model. First, the parameter restrictions between the labor force participation and reduced-form hours-of-work equations are compared. The models are then estimated and the results support the weakening of the link between the labor force participation and hours-of-work decisions. One implication of the analysis is that Heckman's model overstates the standard labor supply elasticities because it confounds the direct effect on labor supply with the participation effect. Copyright 1993 by University of Chicago Press.

Date: 1993
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