Air Reserve Personnel Study

Vol. II, The Air Reserve Forces and the Economics of Secondary Labor Market Participation

by Bernard D. Rostker, Robert Shishko


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Investigates the determinants of the aggregate supply function of moonlighting labor in terms of demographic and market factors. The Tobit model of limited dependent variables was used to estimate a moonlighting supply curve from data from the Income Dynamics Panel study. The elasticity of supply with respect to moonlighting wages was found to be about 1.1 for hours and 0.9 for participation. If these results hold for the Air Reserve Forces, it will be costly to replace draft-induced enlistees with volunteers from the moonlighting labor market. Since the absolute value of the moonlighting wage rate elasticity is greater than the absolute value of the primary wage rate elasticity, there will be some relief if the two increase at the same rate.

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