Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands

R.W. Euwals, A.H.O. van Soest

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Abstract

Desired and actual working hours of unmarried adults are analyzed.A discrete structural neoclassical model is used to explain desired hours.Desired hours depend on gross wage rates, tax and benefit rules, other income, and some background variables.The model takes account of fixed costs of working and of prediction errors in wage rates of nonworkers.Actual hours are explained from desired hours and hours restrictions.Deviations between actual and desired hours are used to identify equations for involuntary unemployment and the lack of part-time jobs.Explanatory variables include age, education level, and the difference between potential earnings and some reference (minimum) wage.The model is estimated using cross-section data from the October 1988 wave of the Dutch Socio-Economic Panel.We find larger wage elasticities of desired hours of work for females than for males.People with potential earnings below their reference wage have a significantly larger probability of involuntary unemployment than others.Apart from involuntary unemployment, the lack of part-time jobs appears to be an important source of hours restrictions.
Original languageEnglish
Place of PublicationTilburg
PublisherEconometrics
Number of pages25
Volume1996-23
Publication statusPublished - 1996

Publication series

NameCentER Discussion Paper
Volume1996-23

Fingerprint

Labor supply
Involuntary unemployment
The Netherlands
Wage rate
Socio-economics
Neoclassical model
Deviation
Tax
Wages
Wage elasticity
Education
Income
Fixed costs
Cross section
Hours of work
Minimum wage
Working hours
Prediction error

Keywords

  • labour supply
  • hours of work
  • The Netherlands

Cite this

Euwals, R. W., & van Soest, A. H. O. (1996). Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands. (CentER Discussion Paper; Vol. 1996-23). Tilburg: Econometrics.
Euwals, R.W. ; van Soest, A.H.O. / Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands. Tilburg : Econometrics, 1996. (CentER Discussion Paper).
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Euwals, RW & van Soest, AHO 1996 'Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands' CentER Discussion Paper, vol. 1996-23, Econometrics, Tilburg.

Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands. / Euwals, R.W.; van Soest, A.H.O.

Tilburg : Econometrics, 1996. (CentER Discussion Paper; Vol. 1996-23).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands

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AU - van Soest, A.H.O.

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N2 - Desired and actual working hours of unmarried adults are analyzed.A discrete structural neoclassical model is used to explain desired hours.Desired hours depend on gross wage rates, tax and benefit rules, other income, and some background variables.The model takes account of fixed costs of working and of prediction errors in wage rates of nonworkers.Actual hours are explained from desired hours and hours restrictions.Deviations between actual and desired hours are used to identify equations for involuntary unemployment and the lack of part-time jobs.Explanatory variables include age, education level, and the difference between potential earnings and some reference (minimum) wage.The model is estimated using cross-section data from the October 1988 wave of the Dutch Socio-Economic Panel.We find larger wage elasticities of desired hours of work for females than for males.People with potential earnings below their reference wage have a significantly larger probability of involuntary unemployment than others.Apart from involuntary unemployment, the lack of part-time jobs appears to be an important source of hours restrictions.

AB - Desired and actual working hours of unmarried adults are analyzed.A discrete structural neoclassical model is used to explain desired hours.Desired hours depend on gross wage rates, tax and benefit rules, other income, and some background variables.The model takes account of fixed costs of working and of prediction errors in wage rates of nonworkers.Actual hours are explained from desired hours and hours restrictions.Deviations between actual and desired hours are used to identify equations for involuntary unemployment and the lack of part-time jobs.Explanatory variables include age, education level, and the difference between potential earnings and some reference (minimum) wage.The model is estimated using cross-section data from the October 1988 wave of the Dutch Socio-Economic Panel.We find larger wage elasticities of desired hours of work for females than for males.People with potential earnings below their reference wage have a significantly larger probability of involuntary unemployment than others.Apart from involuntary unemployment, the lack of part-time jobs appears to be an important source of hours restrictions.

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BT - Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands

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Euwals RW, van Soest AHO. Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands. Tilburg: Econometrics. 1996. (CentER Discussion Paper).