Primary aim of the research is to identify the determinants of the labour supply for the young employees in the UK and provide justification for the fact that most employees can partially determine their working patterns. We then relate flexibility at micro level with macro labour market indicators showing that there is a certain degree of correlation between labour market flexibility and mobility (either within or between employers) in the labour market. We use panel data from the British Household Panel Survey following a multinomial logit approach which identifies possible labour market outcomes based on the existence of previous constraints in the working hours (either over-employment or under employment) and controlling for various time invariant and dynamic factors. We finally account for the possibility that job changing is endogenous, implying that previous labour supply studies (e.g. Altonji and Paxson (1988) ) provide biased labour supply estimates.
Finally, we hope to extend our work on a European Basis using the ECHP.
My work is supervised by Professor John Sessions