Does temporal and locational flexibility of work increase the supply of working hours? Evidence from the Netherlands

Abstract

In recent years, many employees have gained more control over temporal and locational aspects of their work via a variety of flexible work arrangements, such as flexi-time and telehomework. This temporal and locational flexibility of work (TLF) is often seen as a means to facilitate the combination of work and private life. As such it has been recommended as a policy to increase the average number of working hours of part-time workers. To the best of our knowledge, the effectiveness of this policy instrument has not been tested empirically yet. We therefore analyse whether flexi-time and telehomework arrangements increase the number of actual, contracted, and preferred working hours. Based on Dutch household panel data, our results indicate that the link between TLF and working hours is quite weak. Telehomework is associated with moderate increases in actual hours, but not in contracted or preferred hours. Flexi-time generally does not seem to be associated with an increase in hours worked. Despite positive effects on job satisfaction and working time fit, we do not find any convincing evidence of a positive effect of TLF on labour supply. JEL classification: J22, J32, M52, M54