The Effect of Job Flexibility on Women Labor Market Outcomes: Estimates from a Search and Bargaining Model


by Luca Flabbi and Andrea Moro .
Journal of Econometrics 168, 2012, 81-95. : pdf
This paper presents and estimates a search model of the labor market where jobs are characterized by wages and work-hours exibility. Flexibility is valued by workers, and is costly to provide for employers. The model generates observed wage distributions directly related to the preference for exibility parameters: the higher the preference for exibility, the wider is the support of the wage distribution at exible jobs and the larger is the discontinuity between the wage distribution at exible and non- exible jobs. Results show that more than one third of women place positive value to exibility, and that reducing the cost of exibility may considerably reduce the gender wage gap.

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