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The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model

Author

Listed:
  • Flabbi, Luca

    (University of North Carolina, Chapel Hill)

  • Moro, Andrea

    (Vanderbilt University)

Abstract

This paper develops and estimates a search model of the labor market where jobs are characterized by wages and work-hours flexibility. Flexibility is valued by workers, and is costly to provide for employers. The model generates observed wage distributions directly related to the preference for flexibility parameters: the higher the preference for flexibility, the wider is the support of the wage distribution at flexible jobs and the larger is the discontinuity between the wage distribution at flexible and non-flexible jobs. Estimation results show that more than one third of women place positive value to flexibility, with women with a college degree valuing flexibility more than women with a high school degree. Counterfactual experiments show that flexibility has a substantial impact on the wage distribution but not on the unemployment rate. We comment on the implications of our approach for gender differentials in wages and schooling.

Suggested Citation

  • Flabbi, Luca & Moro, Andrea, 2010. "The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model," IZA Discussion Papers 4829, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4829
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    More about this item

    Keywords

    work-hours flexibility; structural estimation; search model;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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