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

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  • Zabel, Jeffrey E

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.

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  • Zabel, Jeffrey E, 1993. "The Relationship between Hours of Work and Labor Force Participation in Four Models of Labor Supply Behavior," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 387-416, April.
    • Handle: RePEc:ucp:jlabec:v:11:y:1993:i:2:p:387-416
    DOI: 10.1086/298301
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    1. R. R. Bryant & A. Jayawardhana & V. A. Samaranayake & A. Wilhite, "undated". "The impact of alcohol and drug use on employment: A labor market study using the National Longitudinal Survey of Youth," Institute for Research on Poverty Discussion Papers 1092-96, University of Wisconsin Institute for Research on Poverty.
    2. Liu, Shimeng & Yang, Xi, 2020. "Property tax limits and female labor supply: Evidence from the housing boom and bust," Journal of Housing Economics, Elsevier, vol. 50(C).
    3. Atallah, Gamal, 1998. "Les impôts sur le revenu et l’offre de travail des femmes mariées : une revue de la littérature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(1), pages 95-128, mars.
    4. Larson, Douglas M. & Lew, Daniel K., 2001. "Measuring Individual-Specific Shadow Values of Time," Western Region Archives 321691, Western Region - Western Extension Directors Association (WEDA).
    5. Matthieu Bunel, 2004. "Les conjoints des salariés passés à 35 heures travaillent-ils davantage ?. Une analyse de l'offre de travail familiale sur données françaises," Economie & Prévision, La Documentation Française, vol. 0(3), pages 165-188.
    6. Wichitaksorn, Nuttanan & Tsurumi, Hiroki, 2013. "Comparison of MCMC algorithms for the estimation of Tobit model with non-normal error: The case of asymmetric Laplace distribution," Computational Statistics & Data Analysis, Elsevier, vol. 67(C), pages 226-235.
    7. Martin Huber & Giovanni Mellace, 2014. "Testing exclusion restrictions and additive separability in sample selection models," Empirical Economics, Springer, vol. 47(1), pages 75-92, August.
    8. Feather, Peter & Shaw, W. Douglass, 1999. "Estimating the Cost of Leisure Time for Recreation Demand Models," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 49-65, July.
    9. Kyoo-il Kim & José Carlos Rodríguez-Pueblita, 2005. "Are Married Women Secondary Workers? The Evolution of Married Women's Labor Supply in the U.S. from 1983 to 2000: Working Paper 2005-11," Working Papers 17570, Congressional Budget Office.
    10. Chunbei Wang & Le Wang, 2017. "Knot yet: minimum marriage age law, marriage delay, and earnings," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 771-804, July.
    11. Andronis, Lazaros & Maredza, Mandy & Petrou, Stavros, 2019. "Measuring, valuing and including forgone childhood education and leisure time costs in economic evaluation: Methods, challenges and the way forward," Social Science & Medicine, Elsevier, vol. 237(C), pages 1-1.
    12. Sum Lo Simon Ming, 2023. "Desired work-leisure balance in a partial equilibrium job search model with multiple job holding," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-43, December.
    13. Ira N. Gang & Myeong-Su Yun, 2001. "The Gender Wage Gap and Discrimination, East Germany 1990-1997," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 123-127.
    14. Nada Eissa & Jeffrey B. Liebman, 1996. "Labor Supply Response to the Earned Income Tax Credit," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 605-637.
    15. Zabel, Jeffrey E., 1997. "Estimating wage elasticities for life-cycle models of labour supply behavior," Labour Economics, Elsevier, vol. 4(3), pages 223-244, September.
    16. Sen, Bisakha, 2000. "How important is anticipation of divorce in married women's labor supply decisions? An intercohort comparison using NLS data," Economics Letters, Elsevier, vol. 67(2), pages 209-216, May.
    17. Huber, Martin & Mellace, Giovanni, 2011. "Testing instrument validity in sample selection models," Economics Working Paper Series 1145, University of St. Gallen, School of Economics and Political Science.
    18. Larson, Douglas M. & Lew, Daniel K. & Barrett, James M., 2002. "Measuring The Effects Of The "Timing Of Time" On Shadow Values Of Leisure Time," 2002 Annual meeting, July 28-31, Long Beach, CA 19626, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Eberharter, Veronika V., 2001. "Gender roles, labour market participation and household income position," Structural Change and Economic Dynamics, Elsevier, vol. 12(3), pages 235-246, September.
    20. Sarah K. Burns & James P. Ziliak, 2017. "Identifying the Elasticity of Taxable Income," Economic Journal, Royal Economic Society, vol. 127(600), pages 297-329, March.
    21. Karine Briard, 2020. "L’élasticité de l’offre de travail des femmes en France. Petite revue de méthodes et de résultats," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(5), pages 39-72.
    22. Janet Z. Giele & Elke Holst, 1997. "Dynamics of Women's Labor Force Participation in the United States and West Germany, 1983 to 1990," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 55-61.
    23. Julie Lacroix & Elena Vidal-Coso, 2019. "Differences in Labor Supply by Birthplace and Family Composition in Switzerland: the Role of Human Capital and Household Income," Journal of International Migration and Integration, Springer, vol. 20(3), pages 659-684, August.
    24. Dhamija, Gaurav & Roychowdhury, Punarjit, 2018. "The impact of women's age at marriage on own and spousal labor market outcomes in India: causation or selection?," MPRA Paper 86686, University Library of Munich, Germany.

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