Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding

Francesco Renna, Ronald l. Oaxaca, Chung Choe

Research output: Working paper

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Abstract

This paper develops a uni?ed 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 multinomial selection into 6 mutually exclusive labor supply regimes. We derive and estimate the associated Slutsky equation wage and income elasticities using data from the British Household Panel Survey 1991- 2008. Our study ?nds that the income and wage elasticities are much larger for labor supply to job 2 compared with job 1.
Original languageEnglish
PublisherCEPS/INSTEAD
Number of pages40
Publication statusPublished - 2013

Publication series

NameWorking Papers
PublisherCEPS/INSTEAD
No.2013-03

Keywords

  • Stone-Geary
  • dual job
  • labor supply

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