Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Incentivizing Secondary Work Beyond Full-Time: Evidence from a Natural Experiment in Belgium
Stockholm University, Faculty of Social Sciences, Department of Economics.
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Demographic change has motivated various policy interventions to increase different margins of labour supply. This paper evaluates the recent ``flexi-job reform'' from Belgium, which introduced tax-exempt secondary jobs for specific sectors for near-to full-time workers. Using panel data for the years 2012--2019, I analyze the reform's impacts on labour supply, demand and wages for workers and firms using difference-in-differences estimation. The results show a small increase in both secondary working time and secondary wages among full-time workers and a larger increase in working time among the high-response subset of individuals with similar jobs prior to the reform. I also find strong effects on the firm side as firms in affected sectors restructure their workforce towards more secondary work. Taken together, this study shows that there exists a modest potential to increase labour supply on the full-time margin and suggests that hours constraints are the reason this potential was not used before. The Belgian policy represents an easily implementable approach to using this potential without obvious negative effects.

Keywords [en]
labour supply, labour demand, full-time work, multiple jobholding, hours constraints, tax incentives, flexibility
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:su:diva-232706OAI: oai:DiVA.org:su-232706DiVA, id: diva2:1891312
Available from: 2024-08-21 Created: 2024-08-21 Last updated: 2024-08-25
In thesis
1. Essays on Labour Supply and Inequality
Open this publication in new window or tab >>Essays on Labour Supply and Inequality
2024 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This compilation thesis consists of four distinct studies, each contributing valuable insights into the dynamics of labor supply, income inequality, life expectancy, and the child penalty in the labor market. 

The first study investigates the effects of Belgium's "flexi-job reform," which introduced tax-exempt secondary jobs for near-to full-time workers in specific sectors. Using a difference-in-differences estimation, the study finds a modest increase in secondary working time and wages and significant restructuring among firms in affected sectors. This research identifies a limited potential to boost labor supply at the full-time margin through targeted policy interventions.

The second paper explores the evolution of income inequality in Sweden from 1990 to 2021, revealing a significant increase in inequality. The study decomposes this trend by examining changes in the wage distribution, working hours, capital incomes, and looks at the effects of immigration, taxes, and benefits, to offer a comprehensive view of the factors driving income disparity in Sweden.

The third study delves into the rising income gradient in life expectancy in Sweden. Analyzing registry data from 1960 to 2021, the research uncovers a widening gap in life expectancy between the highest and lowest income percentiles. The study challenges the notion of a direct link between income inequality and life expectancy, suggesting that a "third factor" correlated with both may be driving this divergence, such as healthier lifestyles and a more rapid adoption of medical advancements among high-income earners.

The final paper examines the child penalty in labor market outcomes, focusing on the importance of genetic factors. Using Swedish administrative data and the Swedish Twin Registry, the study applies an ACE-model and relative fixed-effects regressions to assess the child penalty among twins. The findings show a substantial child penalty of 60.9% for genetically identical twins but no evidence of a long-term penalty, challenging the view that children are responsible for the long-term earnings differences between men and women.

Place, publisher, year, edition, pages
Stockholm: Department of Economics, Stockholm University, 2024. p. 256
Series
Dissertations in Economics, ISSN 1404-3491 ; 2024:3
Keywords
secondary jobholding, income inequality, mortality, child penalty
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:su:diva-232708 (URN)978-91-8014-905-1 (ISBN)978-91-8014-906-8 (ISBN)
Public defence
2024-10-04, Lärosal 8, hus 2, Albano, Albanovägen 20, Stockholm, 10:00 (English)
Opponent
Supervisors
Available from: 2024-09-11 Created: 2024-08-22 Last updated: 2024-09-12Bibliographically approved

Open Access in DiVA

No full text in DiVA

Search in DiVA

By author/editor
Lucke, Charlotte
By organisation
Department of Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 68 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf