We explore the implications of hours demand constraints on the propensity to experience poverty. Our analysis of British data suggests that whilst the extent of poverty increased over the period 1985-2001, its intensity, under some measures, declined. In terms of hours constraints, we find that even the most generous elimination of underemployment vis allowing workers to supply as many hours as they prefer (but not as few) without encountering any negative employment and/or hourly wage implications, leaves the poverty rate and poverty gap virtually unchanged.
|Number of pages||19|
|Journal||Journal of Population Economics|
|Publication status||Published - 2007|
- Wage Differentials (J310)
- Measurement and Analysis of Poverty (I320)
- Time Allocation and Labor Supply (J220)
- Wage Level and Structure