A multilevel economic analysis of labour supply preferences : an empirical study within Europe

Abstract

While actual labour hours have received extensive attention in labour market economics, the number of hours that individuals prefer to work has not. Stated working hour preferences, make for a closer evaluation of the pure supply side of the labour market, freer of demand-side constraints. This thesis examines the determinants of labour supply preferences within European labour markets. Previous literature suggests various potential micro and macro level determinants but has not yet provided the kind of empirical analysis that integrates the examination of determinant factors at both levels of analysis. In view of this, this study establishes a multilevel conceptual framework that considers both micro and macro level determinants of labour supply preferences, as well as any possible interaction effects between the two levels. The research question is empirically explored within this framework utilising the sixth wave of the European Working Conditions Survey as the core dataset, complemented by data from various international data sources for the macro-level perspective. Multilevel statistical analysis and econometric modelling are employed in the exploration of the determinant factors. The analysis shows that significant variation in working hour preferences exists within, as well as across European states. The results provide evidence of significant relationships between working hour preferences and individual socio-demographic and job characteristics, as well as with national institutional, macroeconomic and sociocultural factors. Country characteristics are also found to moderate or intensify the effects of micro-level factors on labour supply preferences. Within the context of important developments in European labour markets and economies, the findings are evaluated for insights into supranational, national and workplace policymaking. Overall, the study’s findings support the pursuit of further multilevel analyses of labour market phenomena by future research.