Institutional constraints on the working week length, fixed costs and female labour supply

E. Rettore
Most of existing studies on labour supply, starting from Heckman (1974), estimate individual preferences by assuming that hours of work are freely chosen, hence optimal with respect to individual preferences. In sharp contrast with this assumption, in several countries the distribution of actual hours of work exhibits large peaks at certain hour regimes, presumably determined by institutional constraints. In this paper a model is introduced replacing the standard assumption by a much weaker one: observed...