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Job Changes and Hours Changes: Understanding the Path of Labor Supply Adjustment

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  • Richard Blundell
  • Mike Brewer
  • Marco Francesconi

Abstract

We use British panel data to investigate single women's labor supply changes in response to three reforms that affected individuals' work incentives. We use these reforms to identify changes in labor supply. There is evidence of small hours of work effects for two of such reforms. A third reform in 1999 instead led to a significant increase in single mothers' hours of work. The mechanism by which the labor supply adjustments were made occurred largely through job changes rather than hours changes with the same employer. This is little overall effect of the reforms on wages. (c) 2008 by The University of Chicago.

Suggested Citation

  • Richard Blundell & Mike Brewer & Marco Francesconi, 2008. "Job Changes and Hours Changes: Understanding the Path of Labor Supply Adjustment," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 421-453, July.
    • Handle: RePEc:ucp:jlabec:v:26:y:2008:i:3:p:421-453
    DOI: 10.1086/588245
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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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