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Fixed Costs and Hours Constraints

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  • William R. Johnson

Abstract

Hours constraints are typically identified by worker responses to questions asking whether they would prefer a job with more hours and more pay or fewer hours and less pay. Because jobs with different hours but the same rate of pay may be infeasible when there are fixed costs of employment or mandatory overtime premia, the constraint in those cases may be illusory. Cross-section estimates of reported hours constraints are consistent with this model implying that the overall level of hours constraints may exaggerate the extent to which the labor market is characterized by frictions and imperfections. Journal: Journal of Human Resources

Suggested Citation

  • William R. Johnson, 2011. "Fixed Costs and Hours Constraints," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 775-799.
    • Handle: RePEc:uwp:jhriss:v:46:y:2011:iv:1:p:775-799
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    References listed on IDEAS

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    Cited by:

    1. Michael C. Knaus & Steffen Otterbach, 2019. "Work Hour Mismatch And Job Mobility: Adjustment Channels And Resolution Rates," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 227-242, January.
    2. Robin Boadway & Zhen Song & Jean‐François Tremblay, 2017. "Optimal Income Taxation and Job Choice," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(4), pages 910-938, October.
    3. Etienne Lalé, 2019. "Search and Multiple Jobholding," Upjohn Working Papers 19-305, W.E. Upjohn Institute for Employment Research.
    4. Schuster, Monica & Vranken, Liesbet & Maertens, Miet, 2017. "You can(’t) always get the job you want: stated versus revealed employment preferences in the Peruvian agro-industry," IOB Working Papers 2017.04, Universiteit Antwerpen, Institute of Development Policy (IOB).
    5. Kawata, Keisuke, 2015. "Work hour mismatches and on-the-job search," Economic Modelling, Elsevier, vol. 47(C), pages 280-291.
    6. Contensou, François & Vranceanu, Radu, 2019. "Working time and wage rate differences : a contract theory approach," ESSEC Working Papers WP1913, ESSEC Research Center, ESSEC Business School, revised 06 Mar 2021.

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