Moonlighting Behavior: Theory and Evidence

Two labor supply issues that have received substantial attention are the responsiveness of labor supply to wage changes and the imposition of labor supply constraints. Adjusting hours worked on a second job may be the practical and perhaps only available response to either event yet, most labor supply studies only examine behavior on the primary job. Examining the motives for moonlighting provides evidence on both the wage-responsiveness of labor supply in general and the existence and consequences of labor supply constraints. If, for instance, workers moonlight only when constrained on their primary jobs, then moonlighting itself implies that labor supply constraints exist and so supports the previous literature that incorporates these constraints (e.g. Hamm 1982, 1986). Regardless of the motive for moonlighting, allowing for potential labor supply adjustments on more than one job may very will alter the much-accepted conclusion regarding the inelasticity f male labor supply (for surveys, see Killingsworth 1983 or Pencavel 1986). By ignoring moonlighting behavior, researchers may be eliminating the most significant avenue for short term labor supply adjustments. Our research substantially improves the manner in which moonlighting is examined, and in so doing sheds new light on male labor supply elasticities. Specifically, we devise a theoretical model that permits different reasons for moonlighting and considers moonlighting in tandem with labor supply behavior on the primary job. Estimating both primary and secondary job hours equations using panel data from the SIPP (Survey of Income and Program Participation ) for prime-aged men, we find evidence that the decision to moonlight is quite responsive to wage changes (on both jobs) and arises from at least two distinct motives. Furthermore, properly modeling primary job hours constraints and differences in moonlighting motives reveals that the desired labor supply of prime-aged males is much more wage-elastic than typically assumed. Why do some people choose to moonlight? The predominant view is that it results from a constraint on hours worked on the primary job (Shishko and Rostker (1976), O'Connell (1979) and Krishnan (1990)). Due to workweek restrictions, economic conditions or other institutional factors, the worker is unable to work (or earn) as much as he or she desires on the primary job (PJ), and may thus consider taking a second job. The decision to moonlight hinges on a comparison between the reservation wage and the wage earned on a second job (SJ). The reservation wage and, there fore, the decision to moonlight will depend in part on the number of hours worked on the primary job. A major shortcoming of the aforementioned studies is the inclusion of (exogenous) primary job hours in moonlighting equations estimated for all workers (even non-moonlighters), many of whom may be unconstrained on their primary jobs. Indeed, estimating hours worked on the PJ as a choice variable is the purpose of a great many labor supply studies. To treat is as fixed and exogenous for all workers in inconsistent with basic economic theory and will likely lead to biased parameter estimates. Our econometric model corrects this misspecification and predicts which workers are constrained on their primary jobs. Another explanation for moonlighting behavior is that labor supplied to different jobs may not be perfect substitutes or, put differently, the age paid and utility lost form the foregone leisure may not completely reflect the benefits and costs to working. For example, working on the primary job may provide the worker with the credentials to take on a higher paying second job, such as a university professor who engages in consulting. Or, working on the second job may provide some pleasure (or less displeasure) but pay less than the primary job, such as a musician who has a "regular" job by day and performs at night. In either example, the costs and benefits of both jobs are more complex than the monetary wages paid and the forgone value of leisure. When faced with such nonpecuniary benefits and costs, optimizing behavior may lead a worker to take two jobs. Whereas Shishko and Rostker (1976) and others acknowledge that such a motive may exist, only Lilja (1991) explores it theoretically and empirically. Using Finnish data, the author finds evidence that this second motive better explains male moonlighting behavior that the first, more popular view. We build on Lilja's work by constructing a more consistent theoretical model and by explicitly modeling the behavior on the first job. Our research examines moonlighting behavior recognizing that workers may moonlight because of constraints on their primary jobs or because the two jobs are heterogeneous. We make no a priori assumptions regarding the existence of PJ constraints. We choose the SIPP data for our empirical analysis because it has detailed information on the second job that is superior to that available in other surveys (namely the panel Study of Income Dynamics, National Longitudinal Survey, and Current Population Survey), and it has a short (four month) survey period that permits us to better observe worker movements into and out of jobs. Cross-sectional data likely understate the true degree of moonlighting. In sum, our results help answer the questions of who moonlights and why, as well as provide new evidence of the wage-responsiveness of labor supply on both jobs and the prevalence of labor supply constraints.moonlighting, second, jobs, labor, Conway, Kimmel

Who Moonlights and Why?: Evidence from the SIPP

Multiple job-holding is a significant characteristic of the labor market, with approximately 6 percent of all employed males reporting a second job in 1993 (Mishel and Bernstein, 1995, p. 226). Moonlighting reflects growing financial stress arising from declining earnings, as well as an increased need for flexibility to combine work and family. Approximately 40 percent of moonlighters report taking the second job due to economic hardship. Additionally, moonlighting is a reflection of the worker's choice to pursue entrepreneurial activities while maintaining the financial stability offered by the primary job. To restate in economic terminology, moonlighting arises from at least two distinct reasons. First, many individuals hold multiple jobs due to some sort of constraint on the primary job that limits that job's earnings capacity. Second, moonlighting may arise because the labor supplied to the two jobs are not perfect substitutes. That is, the wage paid and utility lost from the forgone leisure may not completely reflect the benefits and costs to working. For example, working on the primary job may provide the worker with the credentials to acquire a higher paying second job, such as a university psychologist testifying in a jury trial. Or, working on the second job may provide some satisfaction not received in the same amount or manner from the primary job, such as a comedian who has a "regular" job by day and performs at night. In either example, the costs and benefits of both jobs are more complex than the monetary wages paid and the forgone value of leisure. When faced with such nonpecuniary benefits and costs, optimizing behavior may lead a worker to take two jobs. In contrast to workers who moonlight because they are constrained on their primary jobs (PJ), we expect these kinds of moonlighters to moonlight for longer periods of time because optimizing behavior leads them to supply labor to more than one job, even in the long run. We might also expect to see smaller wage differences between jobs for such workers and the second job (SJ) wage could even be higher than the primary job wage in some situations. Previous research on moonlighting, including Shishko and Rostker (1976), O'Connell (1979) and Krishnan (1990), acknowledges that multiple motives may exist but focuses only on the constraint motive. In related studies, Paxson and Sicherman (1994) explore moonlighting as an alternative avenue for adjusting short-run labor supply, and Abdukadir (1992) examines the possibility that moonlighting is caused by short-term liquidity constraints. Another possible motivation for moonlighting is that certain types of job situations present greater opportunities for tax evasion. Plewes and Stinson (1991) provide survey evidence from the 1989 Current Population Survey of the many distinct reasons for moonlighting reported by workers. The only research in the moonlighting literature that models the joint motives for moonlighting correctly while controlling for the endogeneity of primary job hours are Lilja (1991) and Conway and Kimmel (1994). The latter improves upon Lilja (1991) by specifying a more plausible utility maximizing model and developing a superior instrument for PJ hours. This research examines the characteristics of moonlighters and the length of their moonlighting episodes with the goal of understanding who moonlights and why. The data are for prime-aged men and are drawn from the 1984 Survey of Income and Program Participation (SIPP) panel. The primary advantages of the SIPP are the detailed information provided on up to two jobs (including job start and end dates) and the relatively short length of time (four months) covered by each interview of the survey. Both of these qualities make it possible to identify brief (as well as long) periods of moonlighting, movements into and out of jobs, and the characteristics associated with each job. Because moonlighting may be motivated by short-term financial needs, being able to observe short moonlighting durations is important. We begin by studying the personal and job-related characteristics of moonlighters and how the length of the moonlighting episode varies with these characteristics. We then estimate a duration model with unobserved heterogeneity to identify formally the determinants of moonlighting behavior when multiple motives may exist. Our expectation is that individuals who moonlight because they are constrained on their primary jobs might do so for shorter periods than those who are "job-packaging." Therefore, the hazard rate for workers who moonlight because of primary job constraints should be greater than for those with alternative motives, ceteris paribus. The mixed hazard function will vary as the composition of the sample changes with the duration of the moonlighting episode. By exploring the importance of heterogeneity and the direction of duration dependence of the mixed and structural hazard functions, we gain new insights into the determinants of moonlighting behavior. The descriptive analyses reveal that most moonlighters in our sample work full-time on their primary jobs and 15 to 20 hours a week on lower paying second jobs, and, in spite of those long hours, tend to be poorer than the average worker. Yet, a significant minority earns a higher wage on their second job. Our duration model results suggest that the structural hazard increases over time and there is significant unobserved heterogeneity. Taken together, these results are consistent with the presence of multiple motives for moonlighting, with the constraint motive being the most common.moonlighting, jobs, Kimmel, Conway

What About Mom? The Forgotten Beneficiary of the Medicaid Expansions

This paper contributes to evidence regarding the effectiveness of the Medicaid expansions by focusing on a key beneficiary - the mother - who has previously been overlooked. Using the Natality Detail Files for 1989-96, we estimate the relationship between Medicaid eligibility and maternal health outcomes for several treatment groups and a control group. Potential biases caused by improved reporting are addressed by using a 'straw man' maternal complication not preventable with prenatal care. Our results suggest that increased Medicaid eligibility lead to fewer preventable maternal complications among women most likely to have benefited from the Medicaid expansions.Maternal health; Medicaid; Prenatal care

Sunshine, Fertility and Racial Disparities

This research investigates the effect of sun exposure on fertility, with a special focus on how its effects and consequences for birth outcomes may differ by race. Sun exposure is a key mechanism for obtaining Vitamin D, but this process is inhibited by skin pigmentation. Vitamin D has been linked to male and female fertility and risk of miscarriage, and Vitamin D deficiency is more prevalent among blacks than whites. Using 1989–2004 individual live births data from the Natality Detail Files, county-level, monthly conceptions are estimated as a function of monthly solar insolation, temperature and humidity, as well as month, time and location fixed effects and controls. Insolation has positive, statistically significant effects on fertility for both non Hispanic blacks and whites, but the effects are stronger and the pattern of effect different for black mothers than whit

Who Moonlights and Why? Evidence from the SIPP

Multiple job-holding is a significant characteristic of the labor market, with approximately 6 percent of all employed males reporting a second job in 1993 (Mishel and Bernstein, 1995, p. 226). Moonlighting reflects growing financial stress arising from declining earnings, as well as an increased need for flexibility to combine work and family. Approximately 40 percent of moonlighters report taking the second job due to economic hardship. Additionally, moonlighting is a reflection of the worker\u27s choice to pursue entrepreneurial activities while maintaining the financial stability offered by the primary job. To restate in economic terminology, moonlighting arises from at least two distinct reasons. First, many individuals hold multiple jobs due to some sort of constraint on the primary job that limits that job\u27s earnings capacity. Second, moonlighting may arise because the labor supplied to the two jobs are not perfect substitutes. That is, the wage paid and utility lost from the forgone leisure may not completely reflect the benefits and costs to working. For example, working on the primary job may provide the worker with the credentials to acquire a higher paying second job, such as a university psychologist testifying in a jury trial. Or, working on the second job may provide some satisfaction not received in the same amount or manner from the primary job, such as a comedian who has a regular job by day and performs at night. In either example, the costs and benefits of both jobs are more complex than the monetary wages paid and the forgone value of leisure. When faced with such nonpecuniary benefits and costs, optimizing behavior may lead a worker to take two jobs. In contrast to workers who moonlight because they are constrained on their primary jobs (PJ), we expect these kinds of moonlighters to moonlight for longer periods of time because optimizing behavior leads them to supply labor to more than one job, even in the long run. We might also expect to see smaller wage differences between jobs for such workers and the second job (SJ) wage could even be higher than the primary job wage in some situations

Moonlighting Behavior: Theory and Evidence

Two labor supply issues that have received substantial attention are the responsiveness of labor supply to wage changes and the imposition of labor supply constraints. Adjusting hours worked on a second job may be the practical and perhaps only available response to either event yet, most labor supply studies only examine behavior on the primary job. Examining the motives for moonlighting provides evidence on both the wage-responsiveness of labor supply in general and the existence and consequences of labor supply constraints

Do Workers Know Where Their Tax Dollars Go?

This research presents a theoretical model that not only allows labor supply to be affected by government spending and taxes, but also permits workers to be aware of the relationship between the two. If individuals value government spending and "know where their taxes are going," wage taxes no longer have the same effect on labor supply as a simple reduction in wages because workers view taxes as "contributions" to public sector goods, which they value. The empirical results for men, using data from the PSID, provide weak support for this "contribution effect."Labor Supply

Moonlighting Behavior: Theory and Evidence

Two labor supply issues that have received substantial attention are the responsiveness of labor supply to wage changes and the imposition of labor supply constraints. Adjusting hours worked on a second job may be the practical and perhaps only available response to either event yet, most labor supply studies only examine behavior on the primary job. Examining the motives for moonlighting provides evidence on both the wage-responsiveness of labor supply in general and the existence and consequences of labor supply constraints

Decision Support for Diabetes in Scotland:Implementation and Evaluation of a Clinical Decision Support System

Background: Automated clinical decision support systems (CDSS) are associated with improvements in health care delivery to those with long-term conditions, including diabetes. A CDSS was introduced to two Scottish regions (combined diabetes population ~30 000) via a national diabetes electronic health record. This study aims to describe users’ reactions to the CDSS and to quantify impact on clinical processes and outcomes over two improvement cycles: December 2013 to February 2014 and August 2014 to November 2014. Methods: Feedback was sought via patient questionnaires, health care professional (HCP) focus groups, and questionnaires. Multivariable regression was used to analyze HCP SCI-Diabetes usage (with respect to CDSS message presence/absence) and case-control comparison of clinical processes/outcomes. Cases were patients whose HCP received a CDSS messages during the study period. Closely matched controls were selected from regions outside the study, following similar clinical practice (without CDSS). Clinical process measures were screening rates for diabetes-related complications. Clinical outcomes included HbA1c at 1 year. Results: The CDSS had no adverse impact on consultations. HCPs were generally positive toward CDSS and used it within normal clinical workflow. CDSS messages were generated for 5692 cases, matched to 10 667 controls. Following clinic, the probability of patients being appropriately screened for complications more than doubled for most measures. Mean HbA1c improved in cases and controls but more so in cases (–2.3 mmol/mol [–0.2%] versus –1.1 [–0.1%], P = .003). Discussion and Conclusions: The CDSS was well received; associated with improved efficiencies in working practices; and large improvements in guideline adherence. These evidence-based, early interventions can significantly reduce costly and devastating complications. </jats:sec

Ultra-fast yttrium hydride chemistry at high pressures via non-equilibrium states induced by x-ray free electron laser

Controlling the formation and stoichiometric content of desired phases of materials has become a central interest for the study of a variety of fields, notably high temperature superconductivity under extreme pressures. The further possibility of accessing metastable states by initiating reactions by x-ray triggered mechanisms over ultra-short timescales is enabled with the development of x-ray free electron lasers (XFEL). Utilizing the exceptionally high brilliance x-ray pulses from the EuXFEL, we report the synthesis of a previously unobserved yttrium hydride under high pressure, along with non-stoichiometric changes in hydrogen content as probed at a repetition rate of 4.5\,MHz using time-resolved x-ray diffraction. Exploiting non-equilibrium pathways we synthesize and characterize a hydride with yttrium cations in an \textit{A}15 structure type at 125\,GPa, predicted using crystal structure searches, with a hydrogen content between 4.0--5.75 hydrogens per cation, that is enthalpically metastable on the convex hull. We demonstrate a tailored approach to changing hydrogen content using changes in x-ray fluence that is not accessible using conventional synthesis methods, and reveals a new paradigm in metastable chemical physics