dual job holding is widespread in iran’s labor market, 18% of work force are holding second job in 1993, which increased to 19% in 2003. using a rich three years panel data-set of socioeconomic characteristics of iranian households, the article aims to examine the determinants of dual job holding across the individuals who have participated in the labor market. since the issue of dual job holdi...

In a simple conceptual framework, we organize a multitude of phenomena related to the (mis)prediction of utility. Consequences in terms of distorted choices and lower wellbeing emerge if people have to trade-off between alternatives that are characterized by attributes satisfying extrinsic desires and alternatives serving intrinsic needs. Thereby the neglect of asymmetries in adaptation is prop...

Why Are Married Men Working So Much? Home Production, Household Bargaining and Per-Capita Hours Empirical patterns of labor supply at the micro level tend to reject the unitary model assumption implicit in most macro theories, where households are the deemed to be rational agents. This paper examines the rise in per-capita labor since 1975 and asks how the inclusion of bargaining between spouse...

Fixed effects estimators of nonlinear panel models can be severely biased due to the incidental parameters problem. In this paper I find that the most important component of this incidental parameters bias for probit fixed effects estimators of index coefficients is proportional to the true value of these coefficients, using a large-T expansion of the bias. This result allows me to derive a low...

The focus of this paper is on the implications of income uncertainty for the optimal labor supply. The meaningful distinction between Knightian uncertainty, which is often attributed to Frank Knight (1921), and risk is allowed. Agents are both uncertainty averse and risk averse. The labor-leisure and the labor-leisure-saving choices are studied under Knightian uncertainty in one-period and two-...

Bayesian Procedures as a Numerical Tool for the Estimation of Dynamic Discrete Choice Models Dynamic discrete choice models usually require a general specification of unobserved heterogeneity. In this paper, we apply Bayesian procedures as a numerical tool for the estimation of a female labor supply model based on a sample size which is typical for common household panels. We provide two import...

Informal care is a vital pillar of the British welfare state. A well-known fact in the small economic literature on informal care is the apparent negative relation between care responsibilities and labour market participation. Yet, caring and labour market participation may be endogenous. Using an instrumental variable approach and panel data techniques and employing data from the British House...

It is today generally acknowledged that social norms are important for moral hazard in social insurance systems. In this paper we study whether local variation in sickness absence can be explained by local variation in norms concerning benefit dependency – formed by social interaction on the neighborhood level. A well known methodological problem in analyses of this issue is how to disentangle ...

Early Interventions and Disability Insurance: Experience from a Field Experiment This paper estimates the effects of early interventions in the Swedish sickness insurance system. The aim of the interventions is to screen and, further to, rehabilitate sick listed individuals. We find that the early interventions – in contrast to what is expected – increase the inflow into disability benefits by ...

We formulate a model of household behavior in which cooperation is costly and in which these costs vary across households. Some households rationally decide to behave noncooperatively, which in our context is an efficient outcome. An intriguing feature of the model is that, while the welfare of the spouses is continuous in the state variables, labor supply decisions are not. Small changes in st...