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

See all articles by Joachim Merz

Joachim Merz

Research Institute on Professions; Research Institute on Professions; Leuphana University of Lueneburg; Institute for the Study of Labor (IZA)

Paul Böhm

Research Institute on Professions

Derik Burgert

University of Lueneburg

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

Merz, Joachim and Merz, Joachim and Böhm, Paul and Burgert, Derik, Working Hour Arrangements and Pay - A Treatment Effects Approach for Professions, Entrepeneurs and Employees (July 1, 2005). FFB Discussion Paper No. 50, Available at SSRN: https://ssrn.com/abstract=1313646 or http://dx.doi.org/10.2139/ssrn.1313646

Joachim Merz (Contact Author)

Research Institute on Professions ( email )

Lüneburg
Germany

Research Institute on Professions ( email )

Lüneburg
Germany

Leuphana University of Lueneburg

Scharnhorststrasse 1
Lüneburg, 21314
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Paul Böhm

Research Institute on Professions ( email )

Lüneburg
Germany

Derik Burgert

University of Lueneburg ( email )

Akademisches Auslandsamt
D-21332 Luneburg
Germany