Employees and Second-Job Holding in the Federal Republic of Yugoslavia

Abstract

This paper explores the second-job holding (or 'moonlighting') behaviour of a sample of employees using data from a unique survey conducted for the Federal Republic of Yugoslavia (FRY) in January 1998. Both participation in 'moonlighting' and the number of hours worked are examined. The participation model performs better in an econometric sense and provides the focus for our discussion. We note a strong regional dimension to 'moonlighting' in the FRY with employees in Central Serbia disproportionately represented in this activity. In addition, blue-collar workers are found to be more likely to engage in 'moonlighting' than white-collar workers. The set of labour supply variables implied by neo-classical theory exerts a strong influence and explains a significant amount of the phenomenon of interest. Our calculations suggest that if main (or regular) job earnings are restored to levels that prevailed at the time of the 'break-up' of the federation, employee second-job holding in the FRY would only fall by about one-seventh.

JEL Classification: J21, J22, P2, P3