Abstract:In this paper we discuss a general framework for analyzing labor supply behavior in the presence of complicated budget-and quantity constraints of which some are unobserved. The point of departure is that an individual's labor supply decision can be considered as a choice from a set of discrete alternatives (jobs). These jobs are characterized by attributes such as hours of work, sector specific wages and other sector specific aspects of the jobs. We focus in particular on theoretical justification of function… Show more
“…From Table A1, we observe that the sample selection variable has an insignificant effect. The effects of schooling and experience are consistent with findings in previous analyses using Norwegian data (see, for example, Dagsvik and Strøm, 2006). In agreement with our a priori belief we find, ceteris paribus, that females living in densely populated areas have higher expected real wage rates than females living in sparsely populated areas.…”
Abstract:This paper analyzes labor force participation with particular reference to the discouraged worker effect. Discouraged workers are those who do not search for work because they view their chances of finding a suitable job as too low. The theoretical point of departure is a search model where the worker evaluates the expected utility of searching for work and decides to participate in the labor market if the expected utility of the search exceeds the utility of not working. From this framework we derive an empirical model for the probability that the worker will be unemployed or employed as a function of the probability of getting an acceptable job, given that the worker searches for work. The model is estimated on a sample of married and cohabitating women in Norway covering the period from 1988 to 2008. The results show that the discouraged worker effect is substantial. On average, about one third of those who are out of the labor force are discouraged according to our analysis.
“…From Table A1, we observe that the sample selection variable has an insignificant effect. The effects of schooling and experience are consistent with findings in previous analyses using Norwegian data (see, for example, Dagsvik and Strøm, 2006). In agreement with our a priori belief we find, ceteris paribus, that females living in densely populated areas have higher expected real wage rates than females living in sparsely populated areas.…”
Abstract:This paper analyzes labor force participation with particular reference to the discouraged worker effect. Discouraged workers are those who do not search for work because they view their chances of finding a suitable job as too low. The theoretical point of departure is a search model where the worker evaluates the expected utility of searching for work and decides to participate in the labor market if the expected utility of the search exceeds the utility of not working. From this framework we derive an empirical model for the probability that the worker will be unemployed or employed as a function of the probability of getting an acceptable job, given that the worker searches for work. The model is estimated on a sample of married and cohabitating women in Norway covering the period from 1988 to 2008. The results show that the discouraged worker effect is substantial. On average, about one third of those who are out of the labor force are discouraged according to our analysis.
“…We follow an alternative approach, based on Dagsvik and Jia (2006) and Dagsvik and Strøm (2006): labor supply behavior is viewed as an outcome of agents choosing from a set of job "packages", each of which is characterized by an offered wage rate, offered hours of work and nonpecuniary (qualitative) attributes describing the nature of the job-specific tasks to be performed. Thus, the hours of work of a given job are assumed fixed.…”
Section: Modeling Labor Supply: An Alternative Methodologymentioning
confidence: 99%
“…Dagsvik and Strøm (2004) showed that the model is identified under the restriction that g(.) is a distribution function over the possible positive hours of work.…”
Section: The Terms G(h) H > 0 Are Called Opportunity Densitiesmentioning
confidence: 99%
“…11 However, the polynomial functional form is not globally monotone in consumption, and one must therefore check if the estimated function in fact is monotone for the admissible values of consumption. Dagsvik and Strøm (2006) argued that implications from the theory of meaningfulness and dimensional invariance may be used to restrict the functional form of the utility function. Their assumptions lead to a type of generalized Box-Cox utility function given by:…”
Section: Functional Forms Of the Utility Representationmentioning
confidence: 99%
“…In our analysis, we have applied an alternative modeling approach based on the model developed by Dagsvik and Strøm (2006) and Dagsvik and Jia (2006). Like the models of Van Soest (1995), this approach is also developed within a discretechoice framework.…”
This paper emphasizes differences among short-term contracts in terms of career prospects. Using French data over the 2002-2010 period, we rely on a dynamic model with fixed effects to disentangle state dependence from unobserved heterogeneity. Although fixed-term contracts may provide a 'stepping-stone' to permanent positions, temporary agency work is hardly better than unemployment in this regard. The Great Recession of 2008 has changed the dynamics on the labor market and amplified the difference between fixed-term contracts and temporary agency work. For both types of temporary workers, providing overtime work does not significantly increase the transition to permanent employment.
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