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Author: | Averett, S. L. Hotchkiss, J. L. |
Title: | Female labor supply with discontinuous, nonconvex budget constraint: incorporation of a part-time/full-time wage differential |
Journal: | Review of Economics and Statistics
1997 : AUG, VOL. 79:3, p. 461-470 |
Index terms: | PAY DIFFERENTIALS LABOUR SUPPLY WOMEN WORKERS PART-TIME WORKERS BUDGETING |
Language: | eng |
Abstract: | This study examines the role the well-documented part-time /full-time wage differential plays in determining labor supply by structurally incorporating that wage differential into the budget set that decision makers face. The incidence of a higher wage being paid to full-time workers and a lower wage being paid to part-time workers also provides a natural setting in which to explore the importance of tied wagehours offers in the estimation of labor supply. The discontinuity in the budget constraint generated by the part-time/ full-time wage differential introduces a degree of difficulty in the estimation procedure and raises some estimation issues previously not encountered in the nonlinear budget set literature. |
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