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The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model

Citation

Flabbi, Luca & Moro, Andrea (2012). The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model. Journal of Econometrics, 168(1), 81-95.

Abstract

In this article, we develop a search model of the labor market in which jobs are characterized by work hours’ flexibility. Workers value flexibility, which is costly for employers to provide. We estimate the model on a sample of women extracted from the CPS. The model parameters are empirically identified because the accepted wage distributions of flexible and non-flexible jobs are directly related to the preference for flexibility parameters. Results show that more than one-third of women place a small, positive value on flexibility. Women with a college degree value flexibility more than women with only a high school degree. Counterfactual experiments show that flexibility has a substantial impact on the wage distribution but a negligible impact on the unemployment rate. These results suggest that wage and schooling differences between males and females may be importantly related to flexibility.

URL

http://dx.doi.org/10.1016/j.jeconom.2011.09.003

Reference Type

Journal Article

Year Published

2012

Journal Title

Journal of Econometrics

Author(s)

Flabbi, Luca
Moro, Andrea