Abstract:
The purpose of this study is to analyze the effect of wages on labor supply. The main goal is to study different behaviors among employees in various careers, including careers in short supply, by comparing between married men and married women. Moreover, the final results provide wage elasticity of employees working hours. From estimation of regression using Heckman two-step estimator, it is found that the elasticity of working hours with respect to wage between male and female was different. Married women employees could be divided into 2 groups. In the first group, the wage elasticity of working hours was rather small. Career groups (their elasticities) are the following: the 1st career, legislators, senior officials and managers (-0.37); the 2nd career, professionals (0.034); the 3rd career, technicians and associate professionals (0.64); the 4th career, clerks (0.45); the 5th career, service workers and shop and market sales workers (0.31). In the second group, the wage elasticity was much larger. Career groups (their elasticities) are the following: the 6th career, skilled agricultural and fishery workers (1.38); the 7th career, craft and related trades workers (1.50); the 8th career, plant and machine operators and assemblers (1.42); the 9th career, elementary occupations (1.31). The wage elasticities among married men employees were rather small in every career groups. However, for careers in short supply, the wage elasticities among women employees were rather large: waitresses (1.324) and cleaning workers (1.142). For men employees, the wage elasticities were small among technician (0.13), waiter (0.22) cleaning workers (0.55), and engineer (-0.03) From the study, it is proposed to increase wages for careers in short supply (except engineer) since both male and female tend to work more if they can earn more.