The Intensive and Extensive Margin of European Labour Supply
34 Pages Posted: 28 Nov 2011
Date Written: November 1, 2011
Labour supply is determined by two factors: the participation of workers in the labour market (extensive margin), and the number of hours supplied by those working (intensive margin). Based on the European Union Labour Force Survey (EU-LFS), we analyze which margin is more decisive in determining overall labour supply in 24 Member States. The results reveal large differences between countries, even after controlling for composition effects in terms of socio-demographic and household characteristics. In addition to individual labour supply, our focus is on differences between EU Member States concerning household labour supply. Joint determination of the number of hours worked between spouses can be observed for dual-income couples in Austria, the Netherlands and Spain.
Keywords: Female labour supply, household labour supply, European Union, EU-LFS
JEL Classification: J22, J21, J16
Suggested Citation: Suggested Citation