Is There a Business Cycle Effect on the Incidence of Dual Job Holding?

25 Pages Posted: 25 Jun 2019

See all articles by Chung Choe

Chung Choe

Hanyang University

Ronald L. Oaxaca

University of Arizona - Department of Economics; IZA Institute of Labor Economics

Francesco Renna

University of Akron

Abstract

This paper examines the extent to which the incidence of dual job holding is cyclically sensitive in the context of hours constraints on labor supply. Linear probability models of the incidence of dual job holding are estimated separately for each hours constraint regime. Selection effects are accounted for in a correlated random effects setting in which selection into overemployment, unconstrained hours, and underemployment is separately estimated each year from an ordered probit model. As measured by the local unemployment rate, transitory business cycle movements have no effect on the incidence of dual job holding. However, a sustained change in the local unemployment rate reduces the incidence of dual job holding among workers who are not hours constrained on their main jobs.

Keywords: dual job, labor supply, hours constraint, business cycle

JEL Classification: J01, J22, J49

Suggested Citation

Choe, Chung and Oaxaca, Ronald L. and Renna, Francesco, Is There a Business Cycle Effect on the Incidence of Dual Job Holding?. IZA Discussion Paper No. 12425. Available at SSRN: https://ssrn.com/abstract=3408323

Chung Choe (Contact Author)

Hanyang University ( email )

Ansan
Korea, Republic of (South Korea)

HOME PAGE: http://https://sites.google.com/site/choechung/home

Ronald L. Oaxaca

University of Arizona - Department of Economics ( email )

McClelland Hall
Tucson, AZ 85721-0108
United States
520-621-4135 (Phone)
520-621-8450 (Fax)

IZA Institute of Labor Economics

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

Francesco Renna

University of Akron ( email )

259 S. Broadway
Akron, OH 44325
United States

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