Journal of Labor Economics Vol. 11 No. 2 1993
The Relationship between Hours of Work and Labor Force Participation in Four Models of Labor Supply Behavior
Abstract
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.
- DOI
- 10.1086/298301
- Volume
- 11
- Issue
- 2
- Pages
- 387-416
- Language
- en
- Sources
- openalex crossref