Modelling and Empirical Evaluation of Labour Supply Behaviour: Emphasis on Preference Formation, Job Characteristics and Hours Restrictions (Studies in Contemporary Economics)

This book deals with modelling of neoclassical labour supply models for one-adult and two-adult households. A standard labour supply model is presented and estimated on Dutch data from 1985. A modification of the standard model is formulated taking explicit account of nonconvexities in the budget set, related to the Dutch social security and welfare system. Habit formation and interdependent preferences are analyzed and a structural model of job choice, labour supply and wages is developed by incorporating nonpecuniary job characteristics into a utility maximization model. A full simultaneous model of labour supply in wage determination is estimated, taking into account the possibility that the individual is faced with the limited availability of jobs. Of particular interest to the readers will be the new methods developed and the results presented.