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Labour market dynamics according the individual working hour tension (preferred workinghours minus actual working hours) of active people with focus on the self-employed, asprofessions and entrepreneurs, and employees are investigated in our study. The individuallongitudinal analysis based on panel data allows us to follow the individual process ofworking time preferences and actual outcomes in its individual convergence/divergencebalancing process in the course of time. Our microanalytic and paneleconometric results (withpooled, one and two factor fixed and random effects models) quantify the working hourtension developments and its determinants in a decade from the mid 80s to the mid 90s.Microdata base is the German Socio-Economic Panel with ten waves from 1985 to 1994.Finally, we discuss impacts of our results for labour market strategies and a targetedeconomic and social policy.

Preferred vs. Actual Working Hours - A Ten Years Paneleconometric Analysis for Professions, Entrepreneurs and Employees in Germany