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Oxford Economic Papers Advance Access originally published online on October 21, 2008
Oxford Economic Papers 2009 61(2):240-274; doi:10.1093/oep/gpn035
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© Oxford University Press 2008 All rights reserved

Working hours flexibility and older workers’ labor supply

Anne C. Gielen

Department of Economics, Maastricht University, P.O.Box 616, 6200 MD Maastricht, The Netherlands, IZA, and ROA; e-mail: A.Gielen{at}algec.unimaas.nl

JEL classifications: J22, J26, J63


  Abstract

This paper studies the presence of hours constraints on the UK labor market and its effect on older workers labor supply. Using panel data for the period 1991–2004, the results from a competing risks model show that over-employed male workers can freely reduce working hours with their current employer before retiring completely. However, some over-employed women are observed to leave the labor market early due to hours constraints. This suggests that more flexibility in working hours can increase the labor market participation for some older workers as has often been suggested.


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