The Economics of Dual Job Holding: A Job Portfolio Model of Labor Supply

27 Pages Posted: 25 Jan 2006

See all articles by Francesco Renna

Francesco Renna

University of Akron

Ronald L. Oaxaca

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

Date Written: January 2006

Abstract

In this paper we develop a job portfolio model of dual job holding based on a Stone-Geary utility function. We derive the associated Slutsky equation components. Because the job portfolio model applies only to unconstrained dual jobholders, we separate individuals who moonlight because of an hours constraint from dual jobholders who work on two job for reasons different from an hours constraint. Income and wage elasticities are estimated for workers without hours constraints using data from the May 1991 supplement to the Current Population Survey. Our study finds that the income and compensated wage elasticities are much larger for labor supply to job 2 compared with job 1.

Keywords: dual job, labor supply, Stone-Geary

JEL Classification: J22

Suggested Citation

Renna, Francesco and Oaxaca, Ronald L., The Economics of Dual Job Holding: A Job Portfolio Model of Labor Supply (January 2006). IZA Discussion Paper No. 1915. Available at SSRN: https://ssrn.com/abstract=877897

Francesco Renna

University of Akron ( email )

259 S. Broadway
Akron, OH 44325
United States

Ronald L. Oaxaca (Contact Author)

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

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