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Constrained By Hours And Restricted In Wages: The Quality Of Matches In The Labor Market

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  • KEITH A. BENDER
  • JOHN DOUGLAS SKÅTUN

Abstract

This paper examines the explicit loss born by workers who face constraints in their working hours by analyzing differences in actual and desired hours and wages. Men tend to be underemployed while women are evenly split between over‐ and underemployment. Losses in surplus are generally small, but 10% of underemployed men and women experience losses of more than 34% or 50% of surplus, respectively. The loss measure is also an important determinant in predicting labor market transitions, meaning increases in surplus losses generate a higher probability of changing from workers’ present jobs or changing the number of hours. (JEL J22, J41)

Suggested Citation

  • Keith A. Bender & John Douglas Skåtun, 2009. "Constrained By Hours And Restricted In Wages: The Quality Of Matches In The Labor Market," Economic Inquiry, Western Economic Association International, vol. 47(3), pages 512-529, July.
    • Handle: RePEc:bla:ecinqu:v:47:y:2009:i:3:p:512-529
    DOI: 10.1111/j.1465-7295.2008.00159.x
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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