The Intensive and Extensive Margin of European Labour Supply

Labour supply is determined by two factors: the participation of workers in the labour market (extensive margin), and the number of hours supplied by those working (intensive margin). Based on the European Union Labour Force Survey (EU-LFS), we analyse which margin is more decisive in determining overall labour supply in 24 Member States. The results reveal large diff erences between countries, even after controlling for composition eff ects in terms of socio-demographic and household characteristics. In addition to individual labour supply, our focus is on diff erences between EU Member States concerning household labour supply. Joint determination of the number of hours worked between spouses can be observed for dual-income couples in Austria, the Netherlands and Spain.