Labor Supply, Flexible Hours and Real Estate Agents

21 Pages Posted: 21 Dec 2009

See all articles by John D. Benjamin

John D. Benjamin

American University - Kogod School of Business

Peter T. Chinloy

American University - Department of Finance and Real Estate

Daniel T. Winkler

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance

Abstract

Real estate agents have flexibility in choosing hours and employers. These responses are tested with a five-equation recursive model. Agents choose between full- and part-time work. The conditional wage measures productivity adjusted for self-selection to each status. Hours worked in each status depend on the fitted after-tax wage and household income, yielding flexible supply elasticities. Using a 2005 survey of 8,450 U.S. real estate agents, a year of experience raises the full-time hourly wage by 2.5%. Conditional hours worked decline by 0.6%, implying an earnings return of 1.9% per year of experience. The labor supply elasticity for full-time agents is 0.21; it is almost zero for part timers.

Suggested Citation

Benjamin, John D. and Chinloy, Peter and Winkler, Daniel T., Labor Supply, Flexible Hours and Real Estate Agents. Real Estate Economics, Vol. 37, Issue 4, pp. 747-767, Winter 2009. Available at SSRN: https://ssrn.com/abstract=1525096 or http://dx.doi.org/10.1111/j.1540-6229.2009.00262.x

John D. Benjamin (Contact Author)

American University - Kogod School of Business ( email )

4400 Massachusetts Avenue NW
Department of Finance
Washington, DC 20016
United States
(202) 885-1892 (Phone)
(202) 885-1946 (Fax)

Peter Chinloy

American University - Department of Finance and Real Estate ( email )

Kogod School of Business
4400 Massachusetts Ave., N.W.
Washington, DC 20016-8044
United States
202-885-1951 (Phone)
202-885-1992 (Fax)

Daniel T. Winkler

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance ( email )

Greensboro, NC 27412
United States
336-256-0122 (Phone)

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