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Choice among Wage-Hours Packages: An Empirical Investigation of Male Labor Supply

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Biddle, Jeff E
Zarkin, Gary A

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Abstract

This article specifies and estimates an empirical model of male labor supply based on an implicit market model of wage-hours determination. The authors discuss how moving from a standard labor supply model to an implicit market model affects model specification and choice of estimation technique. They find that average hourly earnings are not independent of hours worked and that ordinary least squares estimates of the wage-hours relationship are biased. They also show that a labor supply model that assumes wages to be independent of hours worked produces a positively biased estimate of the effect of the wage on labor supply. Copyright 1989 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 7 (1989)
Issue (Month): 4 (October)
Pages: 415-37
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Handle: RePEc:ucp:jlabec:v:7:y:1989:i:4:p:415-37

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  1. repec:ese:iserwp: is not listed on IDEAS
  2. Richard Blundell & Mike Brewer & Marco Francesconi, 2005. "Job changes, hours changes and labour market flexibility: panel data evidence for Britain," IFS Working Papers W05/12, Institute for Fiscal Studies. [Downloadable!]
  3. Daniel S. Hamermesh & Stephen G. Donald, 2004. "The Effect of College Curriculum on Earnings: Accounting for Non-Ignorable Non-Response Bias," NBER Working Papers 10809, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Daniel S. Hamermesh, 2006. "Time to Eat: Household Production under Increasing Income Inequality," IZA Discussion Papers 1965, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Daniel Aaronson & Eric French, 2002. "The effects of progressive taxation on labor supply when hours and wages are jointly determined," Working Paper Series WP-02-22, Federal Reserve Bank of Chicago. [Downloadable!]
  6. Edward E. Leamer & Christopher Thornberg, 1998. "Efforts and Wages: A New Look at the Inter-Industry Wage Differentials," NBER Working Papers 6626, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Richard Blundell & Mike Brewer & Marco Francesconi, 2005. "Job changes, hours changes and the path of labour supply adjustment," IFS Working Papers W05/21, Institute for Fiscal Studies. [Downloadable!]
  8. Richard Blundell & Mike Brewer & Marco Francesconi, 2007. "Job Changes and Hours Changes: Understanding the Path of Labour Supply Adjustment," IZA Discussion Papers 3044, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Giovanni Russo & Wolter Hassink, 2008. "The Part-Time Wage Gap: a Career Perspective," De Economist, Springer, vol. 156(2), pages 145-174, June. [Downloadable!] (restricted)
  10. Joseph G. Altonji & Emiko Usui, 2005. "Work Hours, Wages, and Vacation Leave," NBER Working Papers 11693, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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