Journal Article Monopoly and Uncertainty Get access E. Zabel E. Zabel University of Rochester Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 37, Issue 2, April 1970, Pages 205–219, https://doi.org/10.2307/2296413 Published: 01 April 1970 Article history Received: 01 April 1968 Accepted: 01 April 1969 Published: 01 April 1970

This article analyzes the relationship between hours of work and labor force participation (LFP) in Heckman's model, Cogan's fixed-cost model, Moffitt's minimum hours constraint model, and a generalized version of Heckman's model. First, the parameter restrictions between the LFP 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 LFP 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.