Working Hour Arrangements and Pay - A Treatment Effects Approach for Professions, Entrepeneurs and Employees
FFB Discussion Paper No. 50
44 Pages Posted: 10 Dec 2008 Last revised: 12 May 2009
Date Written: July 1, 2005
Abstract
Traditional welfare analyses based on money income needs to be broadened by its time dimension. In the course of time the traditional full-time work is diminishing and new labour arrangements are discussed (keyword: flexible labour markets). Our study is contributing to economic well-being by adding insights into particular work effort characteristics and its resulting income distribution. With our focus on 'who is working when within a day with which earnings consequences' we go beyond traditional labour market analyses with its working time division into aggregated full and part time work, working hours spread across a week and weekend etc. Whereas the first part of our study is describing the distribution of timing and fragmentation of daily work time and its resulting income based on more than 35.000 diaries of the recent German Time Budget Survey 2001/2002, the second part of our study quantifies determinants of arrangement specific earnings functions detecting significant explanatory pattern of what is behind. The economic theory behind is a human capital approach in a market and non-market context, extended by non-market time use, the partner's working condition, social networking as well as household and regional characteristics. The econometrics use a treatment effects type interdependent estimation of endogenous participation (selection) in a daily working hour pattern (selfselection) and pattern specific earnings function explanation.
Note: Downloadable document is in German.
Keywords: time use and inequality, timing and fragmentation of work time, working hour arrangements, earnings explanation, human capital, market and non-market time use, German time budget survey 2001/2002, time use diary data, treatment effects modelling, self-selection with endogenous selection
JEL Classification: J22, J23, J24, J30
Suggested Citation: Suggested Citation
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