Male labor supply estimates and the decision to moonlight

Abstract

This research improves the manner in which moonlighting is examined by recognizing that workers may moonlight due to primary job hours constraints or because jobs are heterogeneous. Our theoretical model permits both motives for moonlighting and considers moonlighting in tandem with labor supply behavior on the primary job. Both primary and secondary job hours equations are estimated using data from the SIPP for prime-aged men. We conclude that the moonlighting decision is quite responsive to wage changes on both jobs and arises from both motives, and that properly modeling moonlighting produces a relatively high primary job labor supply elasticity.