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Journal Articles
April 2008 (University of Chicago Press)
Article
Job changes, hours changes and the path of labour supply adjustment
Type: Journal Articles
ISSN: 0734-306X
Volume, issue, pages: Vol. 26, No. 3, pp. 421-453
Previous version: IFS Working Papers [Details]
Previous version: IFS Working Papers [Details]

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We use British panel data to investigate single women's labor supply changes in response to three reforms that affected individuals' work incentives. We use these reforms to identify changes in labor supply. There is evidence of small hours of work effects for two of such reforms. A third reform in 1999 instead led to a significant increase in single mothers' hours of work. The mechanism by which the labor supply adjustments were made occurred largely through job changes rather than hours changes with the same employer. This is little overall effect of the reforms on wages.

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