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.
Flabbi, Luca, and Andrea Moro. "The effect of job flexibility on female labor market outcomes: Estimates from a search and bargaining model,"
Journal of Econometrics 168(1),
pp. 81--95, January
title = "The effect of job flexibility on female labor market outcomes: Estimates from a search and bargaining model",
author = "Flabbi, Luca and Andrea Moro",
year = "2012",
month = " January ",
journal = "Journal of Econometrics",
number = "1",
volume = "168",
pages = "81--95",
url = "http://www.andreamoro.net/assets/papers/the_effect_of_job_flexibility.pdf"