02140cam a22002417 4500001000600000003000500006005001700011008004100028100002400069245010600093260006600199490004100265500001500306520119300321530006101514538007201575538003601647700002401683710004201707830007601749856003701825856003601862w1638NBER20160526051834.0160526s1985 mau||||fs|||| 000 0 eng d1 aDickens, William T.10aHours Restrictions and Labor Supplyh[electronic resource] /cWilliam T. Dickens, Shelly J. Lundberg. aCambridge, Mass.bNational Bureau of Economic Researchc1985.1 aNBER working paper seriesvno. w1638 aJune 1985.3 aThis study presents a model of labor supply in which individuals may face constraints on their choice of work hours, and analyzes the sensitivity of parameter estimates and policy conclusions to the usual assumption of unrestricted choice. We set up the labor supply decision asa discrete choice problem, where each worker faces a finite number of employment opportunities, each offering fixed hours of work.The distribution from which these are drawn, as well as the number of draws, is estimated along with the behavioral parameters of individual labor supply.The standard model with unconstrained hours appears as a special case where the number of draws approaches infinity. We estimate the mean absolute difference between desired and actual work hours to be about ten hours perweek. The results strongly support the notion that hours choices are constrained, and suggest that models which ignore restrictions on hours worked may yield biased estimates of the wage elasticity of desired hours. Further, we suggest that analysis of policies such as income transfers and the flat rate tax which do not consider their effects on the distribution of hours offered may be very misleading. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web.1 aLundberg, Shelly J.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w1638.4 uhttp://www.nber.org/papers/w163841uhttp://dx.doi.org/10.3386/w1638