Title: Multiple Job Holding in the United Kingdom: Evidence from the British Household Panel Survey
1Multiple Job Holding in the United
KingdomEvidence from the British Household
Panel Survey
- Zhongmin Wu (Nottingham Trent University)
- Mark Baimbridge (University of Bradford)
- Yu Zhu (University of Kent)
2Motivation
- In 2001 10.5 of workers moonlight (BHPS)
- Officially 27.5 million workers in 2001 (ONS)
- It is estimated that 2.9 million workers
moonlight -
-
- Who moonlight and why do some people choose to
moonlight?
3Hypothesis One
- An individuals willingness to take a second job
depends on whether he can work enough hours at
his prevailing primary wage rate to satisfy his
income goals - Main
job hours constrained - Shishko, Robert Rostker, Bernard (1976)
- The Economics of Multiple Job Holding,
- American Economic Review, 66(3) 298-308
4Hypothesis Two
- Another explanation for moonlighting behaviour is
that labour supplied to different jobs may not be
perfect substitutes or, put differently, the wage
paid and utility lost from the foregone leisure
may not completely reflect the benefits and costs
to working - Conway, Karen Smith Kimmel, Jean (1998)
- Male Labour Supply Estimates and the Decision
to Moonlight, Labour Economics, 5(2) 135-66
5Hypothesis Three
- An individual may hold a second job if they
believe that their main job has a high risk of
termination. Therefore, multiple job holding may
be a response to perceived job insecurity and may
be a hedge against unemployment - Main job
insecurity - Bell, D. N. Hart, R. A. and Wright, R. E. (1997)
Multiple Job-holding as a Hedge against
Unemployment, Centre for Economic Policy Research
Discussion Paper No.1626
6 Five questions relating to an individuals
second job were asked by the British Household
Panel Survey (BHPS)
- Do you currently earn any money from a second job
or from work that you might do from time to time
apart from your main job? - What is it that you do?
- Are you an employee or self-employed?
- How many hours do you usually work a month in
your second job, excluding meal breaks but
including any overtime you might do? - Before tax and other deductions how much did you
earn from your second and all other occasional
jobs in the last calendar month?
7Figure 1
Source Wave 1 to 11, the British Household Panel
Survey
8Figure 2
Source Wave 1 to 11, the British Household Panel
Survey
9Figure 3
Source Wave 1 to 11, the British Household Panel
Survey
10The theoretical model
11The theoretical model
12The theoretical model
13Independent variables incomes
- hourly wage rate for second job
- 3c
- hourly wage rate for main job
- - for women
- annual non-labour income
- --
14Independent variables job satisfaction
- satisfied with total pay
- --- for men 3c
- satisfied with job security
- (not significant) h3
- satisfied with work hours
- h1
15Independent variables Characteristics
in their main jobs
- Permanent
- h3
- Public sector
- h3
- Full time
- --- tm
16Personal or family characteristics
- minutes spent travelling to work
- --for women
- number of children in household
- (for men) --- (for women)
- the person is married
- ---for women
- age at date of interview
- ---
17Education
- first higher degree and teaching qualification
- GCSE
- A level
- Other higher qualification
18Location
- Southeast
-
- Southwest
-
- Eastern
-
19Occupation
- Agriculture, Education, Health, Community and
Household encourage moonlighting. -
- While female workers from transport are more
likely to moonlight, male workers from transport
are less likely to moonlight - -- for men for women
20Year dummy variables
- Overall, moonlighting increased in 1996, 1997,
1998 and 1999 for men - For women it increased in 1996 and 1997 but
decreased in 2001.
21Conclusion
- Evidences do not support that moonlighting is due
to main job hours constrained. - Sathour 70
J2wagegtJbwage - Evidence provide no support for the hypothesis
that multiple job holding may be a response to
perceived job insecurity. - Satsecurity
Permanent - The incentive for moonlighting in the United
Kingdom is due to financial pressures and having
heterogeneous jobs. - 89 two different jobs J2wage
Satpay -