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Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding

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  • RENNA Francesco
  • OAXACA Ronald L.
  • CHOE Chung

Abstract

This paper develops a uni?ed model of dual and unitary job holding based on a Stone-Geary utility function. The model incorporates both constrained and unconstrained labor supply. Panel data methods are adapted to accommodate multinomial selection into 6 mutually exclusive labor supply regimes. We derive and estimate the associated Slutsky equation wage and income elasticities using data from the British Household Panel Survey 1991- 2008. Our study ?nds that the income and wage elasticities are much larger for labor supply to job 2 compared with job 1.

Suggested Citation

  • RENNA Francesco & OAXACA Ronald L. & CHOE Chung, 2013. "Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding," LISER Working Paper Series 2013-03, Luxembourg Institute of Socio-Economic Research (LISER).
    • Handle: RePEc:irs:cepswp:2013-03
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    7. Chung Choe & Ronald L. Oaxaca & Francesco Renna, 2018. "Constrained vs unconstrained labor supply: the economics of dual job holding," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1279-1319, October.
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    13. Zhongmin Wu & Mark Baimbridge & Yu Zhu, 2009. "Multiple job holding in the United Kingdom: evidence from the British Household Panel Survey," Applied Economics, Taylor & Francis Journals, vol. 41(21), pages 2751-2766.
    14. Smith Conway, Karen & Kimmel, Jean, 1998. "Male labor supply estimates and the decision to moonlight," Labour Economics, Elsevier, vol. 5(2), pages 135-166, June.
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    16. Foley, M.C., 1997. "Multiple Job Holding in Russia During Economic Transition," Papers 781, Yale - Economic Growth Center.
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    20. Catalina Amuedo‐Dorantes & Jean Kimmel, 2009. "Moonlighting Over The Business Cycle," Economic Inquiry, Western Economic Association International, vol. 47(4), pages 754-765, October.
    21. Christian Dustmann & María Engracia Rochina-Barrachina, 2007. "Selection correction in panel data models: An application to the estimation of females' wage equations," Econometrics Journal, Royal Economic Society, vol. 10(2), pages 263-293, July.
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    Cited by:

    1. Renna Francesco & Oaxaca Ronald L. & Choe Chung, 2023. "Is There a Business Cycle Effect on the Incidence of Dual Job Holding?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 23(2), pages 443-465, April.
    2. Gregory Gilpin, 2020. "Policy‐Induced School Calendar Changes and Teacher Moonlighting," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 989-1018, January.
    3. Gregory Gilpin, 2018. "Policy-induced School Calendar Changes and Teacher Moonlighting," CAEPR Working Papers 2018-009, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    4. Chung Choe & Ronald L. Oaxaca & Francesco Renna, 2018. "Constrained vs unconstrained labor supply: the economics of dual job holding," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1279-1319, October.
    5. Philipp Lentge, 2022. "Second job holding in Germany – a persistent feature?," Working Paper Series in Economics 416, University of Lüneburg, Institute of Economics.
    6. Kawakami, Atsushi, 2019. "Multiple job holding as a strategy for skills development," Japan and the World Economy, Elsevier, vol. 49(C), pages 73-83.
    7. Merja Kauhanen, 2021. "Multiple job holding in the changing labour market Рevidence from Finland," Working Papers 331, Ty̦n ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    8. Choe, Chung & Oaxaca, Ronald L. & Renna, Francesco, 2020. "Income Taxation and Dual Job Labour Supply," IZA Discussion Papers 13107, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    dual job; labor supply; Stone-Geary;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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