Constrained by hours and restricted in wages: ...

the quality of matches in the labor market

an article by Keith A Bender (University of Wisconsin-Milwaukee) and John Douglas SkÅtun (University of Aberdeen) published in Economic Inquiry Volume 47 Issue 3 (2009)

© 2009 Western Economic Association International

Abstract

This paper examines the explicit loss born by workers who face constraints in their working hours by analysing differences in actual and desired hours and wages. Men tend to be under-employed while women are evenly split between over- and under-employment. Losses in surplus are generally small, but 10% of under-employed men and women experience losses of more than 34% or 50% of surplus, respectively. The loss measure is also an important determinant in predicting labour market transitions, meaning increases in surplus losses generate a higher probability of changing from workers’ present jobs or changing the number of hours.

Hazel’s comment:
An interesting read even if some of the maths was beyond me! For those of you with access to the British Library it’s on display in the Social Sciences Reading Room.

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