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

Francesco Renna, Ronald l. Oaxaca, Chung Choe

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Résumé

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.
langue originaleAnglais
ÉditeurCEPS/INSTEAD
Nombre de pages40
étatPublié - 2013

Série de publications

NomWorking Papers
EditeurCEPS/INSTEAD
Numéro2013-03

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