Ruhr Economic Papers

Ruhr Economic Papers #291

The Intensive and Extensive Margin of European Labour Supply

by Hanna Kröger and Sandra Schaffner

RWI, 11/2011, 32 S./p., 8 Euro, ISBN 978-3-86788-328-3

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Abstract

Labour supply is determined by two factors: the participation of workers in the labour market (extensive margin), and the number of hours supplied by those working (intensive margin). Based on the European Union Labour Force Survey (EU-LFS), we analyse which margin is more decisive in determining overall labour supply in 24 Member States. The results reveal large diff erences between countries, even after controlling for composition effects in terms of socio-demographic and household characteristics. In addition to individual labour supply, our focus is on differences between EU Member States concerning household labour supply. Joint determination of the number of hours worked between spouses can be observed for dual-income couples in Austria, the Netherlands and Spain.

JEL-Classification: J22, J21, J16

Keywords: Female labour supply; household labour supply; European Union; EU-LFS

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