Constrained by Hours and Restricted in Wages: The Quality of Matches in the Labor Market

18 Pages Posted: 8 Oct 2009

See all articles by Keith A. Bender

Keith A. Bender

University of Aberdeen - Business School

John Douglas Skåtun

affiliation not provided to SSRN

Abstract

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

JEL Classification: J22, J41

Suggested Citation

Bender, Keith A. and Skåtun, John Douglas, Constrained by Hours and Restricted in Wages: The Quality of Matches in the Labor Market. Economic Inquiry, Vol. 47, Issue 3, pp. 512-529, July 2009, Available at SSRN: https://ssrn.com/abstract=1484232 or http://dx.doi.org/10.1111/j.1465-7295.2008.00159.x

Keith A. Bender (Contact Author)

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

John Douglas Skåtun

affiliation not provided to SSRN

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