Pursuing Preferences: The Creation and Resolution of Work Hour Mismatches

Mismatches between the number of hours people actually work and the hours they prefer to work are common, but few studies have examined such hour mismatches from a longitudinal perspective. Using two waves of panel data from Australia, the authors offer a new, dynamic picture of hour mismatches. Their analysis shows a fluid labor market in which many mismatches are created and resolved. Nevertheless, their findings also highlight market imperfections. Many mismatches (especially the desire for fewer hours) appear to persist for more than a year, and although a change of employers can resolve mismatches, it can also create them. Moreover, as seen in the findings, processes that create and resolve mismatches are more closely tied to changes in preferred hours than to changes in actual hours.